It seems we are getting better results week by week, inch by inch. The model has a higher positive strength this week, along with a nearly doubled median strength.
Our featured sector is the iShares Dow Jones Home Construction Index, ITB. We have noted that some hot sectors were in the penalty box, and have eagerly awaited some interesting new choices. ITB has finally been released from the penalty box and the strength has risen to a feverish 105. We don’t trade the expanded list, but if we did – this would be a hot buy!
The home construction group has had a big run, making it less attractive to value-oriented investors. ITB has a P/E 23 of and a yield of 0.50%. Not cheap.
The popular home building stocks are all here. The top five make up 43% of the ETF, so concentration is pretty high. Here are the top ten holdings:
|Top 10 Holdings (63.13% of Total Assets)|
For traders, the story is much more interesting. The chart is as pretty as Felix likes them:
As we stated earlier, we have great news as far as strengths, now all we have to do is wait for Felix to start plucking them out of the penalty box (hopefully at a quicker rate than the last month!)