Rinse and Repeat: Homebuilder Stocks

The edge you need as a trader. [Jeff Clark's Market Minute]( Rinse and Repeat: Homebuilder Stocks By Imre Gams, analyst, Market Minute If you want to make a lot of money as a trader – and I mean a lot of money – you need an edge. Every good trader knows exactly where they have an advantage. That advantage is what lets them pull gains out of the market over and over again. One advantage many traders would kill to have is the ability to read a price chart. That’s a skill we’ve been working on developing with you here at Market Minute. On January 6, [we broke down a recent trading call]( in XHB, a homebuilders ETF. So far, the call has worked out really well. If you took the trade when I [first recommended it to you on December 6]( you would have been up over 13% on the stock before the end of the year. Not too bad… Recommended Link [Elon Musk Preparing for America’s Last Bull Market?]( [image]( The richest man in the world, Elon Musk… Billionaire and Shark Tank star Mark Cuban… And the world’s best investor, Warren Buffett… Are already positioned for what could be [America’s last bull market.]( Most everyday folks will be left out… Because this last bull market will only happen in a small niche that accounts for less than 2% of all global stocks. [Click here to see the details and get a free pick that could 10X your money.]( -- The Trend Is Your Friend In the breakdown of that trade, I let you know that when a stock is in an uptrend, it’s best to look for trend continuation patterns. Trading really is that simple. Once we have confirmation an uptrend is over, then we can look to play the downside. But until then, you want to stay on the same side as the larger trend. In the case of XHB, it’s been clear the stock has been in an uptrend for quite some time. That’s why I said on January 6 that if we see another trend continuation pattern, we’ll break it down together once again. Another Pattern And sure enough, XHB is currently tracing out another pattern. This time the pattern is a high base. They’re one of my favorite trend continuation patterns. They’re very simple to understand, easy to spot, and straightforward to trade. A high base appears when a market trades sideways. This sideways trading pattern reflects a balance in power between buyers and sellers. But a market can’t trade sideways forever. In the case of a high base pattern, you want to see prices trading sideways in a fairly tight range. That’s when you can draw the outline of the pattern using two trendlines. You can check this out on the chart below: [Image] Take notice of how the trendlines visualize the tightly-ranging price action. Eventually prices will have to break out. Think of it like water boiling inside a kettle. After enough time has passed, the water will boil, and all that steam has to escape. It’s the same thing with the high base pattern. As you can see, prices are still trading within the confines of the high base. Look for XHB to now bounce off the lower trendline. Afterward, we could see a strong breakout of the top of the pattern. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. That would be the green light to take another trade in anticipation of another strong rally higher. The original target in XHB called for a move to about $108. We’ll continue tracking XHB as it hopefully reaches the target over the coming weeks. If anything changes with the price action of the stock, we’ll break that down together as well. Happy trading, [Signature] Imre Gams Analyst, Market Minute IN CASE YOU MISSED IT… [Prepare Your Money Before Jan. 30 for the AI Aftershock of 2024]( Colin Tedards made a personal fortune on tech darlings like Amazon, Apple, Tesla & Nvidia More people tune into his weekly investor videos than primetime CNN and MSNBC combined. Now he’s traveled to ground zero of the AI revolution to issue this urgent warning: “What’s unfolding in the streets behind me will rip through every portfolio in America & create HUGE winners – and losers. You won’t make a dime from AI in 2024 unless you [do this.]( It’s all thanks to a $200 trillion economic shift — set to unfold in the weeks ahead. He’s showing you the 3 stocks to sell AND buy before January 30th. [Click here to watch his full on-site report (video).]( [image]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](