There Is No Place Like Home:
With money pouring into bonds, as market participants around the world are starving for yield and parking their capital where it is treated best in the world, it is keeping bond yields depressed to say the least. This is certainly keeping a bid under the homebuilding group. The ITB is on a 3 week winning streak, and higher 6 of the last 7. This week it rose .5%, besting the S&P 500 which fell by 1.25%. DHI and LEN, the 2 largest holdings in the ITB that make up more than one quarter of the ETF, are having banner 2020’s up 17 and 27% YTD respectively. The periphery plays are being supported by the underlying groups strength, with perhaps the best example being Home Depot. It rose fractionally this week by .1%, but now trades well above a cup base pivot of 239.41 taken out on 2/10. Even the toxic name Lumber Liquidators is on a 7 session winning streak jumping more than 32% this week (and that was with it CLOSING 12% off intraweek highs), not a typo.