Shut the DOOR and Open the POOL:
Some tickers are clever, others eponymous, and some are both. The two that we will opine on in this paragraph are the charts of DOOR and POOL, which have moved in different directions as of late. Call them periphery homebuilding plays and as we come up on the fourth anniversary of COVID in a couple of months, back then there was an affinity to spruce up their homes. Nowadays homeowners are reluctant to move, mostly because of financial reasons, and those sitting on big paper gains in their current homes can not afford to move elsewhere with mortgage rates, coming down, but still historically high. And that ends up with a lower inventory of available housing which keeps a bid under inflated home PRICES. Will that spur them to “stay put” and decorate? If we were judging that possibility by these two stocks, DOOR would be saying no, with a bear flag formation in place, and POOL would be stating affirmatively. POOL is up 7% over the last month period while DOOR is down by the same amount. Don’t let the door hit you on the way out.