Chris Kimble, a 30-year+ market technician and student of Sir John Templeton, takes a look at XHB, the Homebuilders ETF that's at the foundation of much of the economic focus of the past few years. Today's monthly update on new home sales (courtesy of Calculated Risk) was most disappointing. Chris, however, has a technical perspective that looks beyond the news.
Sir John Templeton used to say, "Don't worry about what you know — it's built into the price. Only worry about what you don't know!"
Well what don't we know about Real Estate that might surprise us? That's above my pay grade.
If all the bad news happens to be built into Real Estate stocks, any chance from a purely technical perspective that a foundation is being built so prices may move higher?
For those inclined to score on defense, if the channel and falling-wedge supports break, the SRS UltraShort Real Estate ETF will most likely fair pretty well.
This chart will test the "Power of the Pattern" for darn sure!
