Home Is Where The Heart Is:

Looking at the homebuilder space one would probably take a look at the XHB for an overall feel. It has been trading in a range between the round 70-80 numbers for the last 6 weeks. There has been plenty of distribution as the fund has lost ground 5 of the last 6 weeks (all five of the WEEKLY declines came in above-average volume). To find pure-play housing names in the ETF one would have to venture down to the third largest component in PHM. RH, the largest holding nearly filled in a gap last week from the 6/9 session. Below is the chart of HD, and it looks poised for a strong rebound after some recent softness. Look for it to approach its 50 day SMA about 3% from here. Other names in the space that could see some power are BECN and FND. The latter name will see a test at the very round par number, if it can get there, as it was above one hundred 8 sessions intraday between 5/18-6/10, but recorded just one CLOSE above it.

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