Know Your Holdings:

I have mentioned in the past that there is zero actual “pure-play” homebuilders in the top ten names in the XHB (homebuilder ETF). If one was looking for exposure to DHI LEN NVR and PHM one would need to invest in the ITB (they are the top 4 holdings and comprise 40% of the ETF). Below is the largest component in the XLF, with the chart of BRKB. Many perhaps are unaware of that, and maybe it is in the position for its insurance position and because of its outperformance too. The stock is holding up much better than many financials peers just 11% off most recent 52-week highs and since breaking above a bull flag to start 2022 at the very round 300 number it went on to retest the move twice before a 60 handle run higher. It has lost ground in 4 of the last 5 weeks and is looking to reclaim the recent break above a bullish ascending triangle near 325. Use Monday’s lows as a stop and let them name potentially advance upward.

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