Housing has been among the elite sectors in this current move. Remember you want to focus on stocks to purchase among the top performers. Stocks that lead tend to stay that way and stocks that lag do the same. Below is an excerpt of two flag plays from our Wednesday Game Plan that have broken out and a bonus cup with handle name still in play.
Stocks that can be bought as they take out the following specific triggers in firm trade are LPX AYI. LPX is a good barometer of the genuine health of the housing group and is higher by 4% YTD and 21% over the last one year period. Its last 2 earnings reactions were positive with gains of 4.4 and 5.4% on 8/4 and 5/5. Prior reactions lost 2.4 and 5.9% but both instances saw significant jumps the day after with 2/12 up 6.4 and 11/6 up 6.3%. The 17.50 level has proved problematic to break above and LPX has been knocking on that door for the last 8 sessions. It has formed a bull flag pattern after a huge 17.7% gain the week ending 10/9 and last weeks UNCH finish was very impressive. Enter with a buy stop above 17.55.