Why I want to short housing stocks!

What is going to happen next? [image] [image] Why am I bearish on homebuilders. After all, it is a seller's market and prices are skyrocketing! Here's why: - The housing affordability index just turn less affordable and with housing prices up almost 17% in the last year and interest rates going up, the index will continue to move in a less affordable direction. - Profit margins for homebullders are at their highest level in decades. They can only go down so earnings will start to decline - The economy is slowing which means usually less demand for housing - Real wages are declining supporting the idea that houses are too expensive. - Technically, the XHB ETF just broke down signaling further weakness. This should be a strong bear market in homebuilders so we should make a lot of money on the downside. [Click here for information on the best weekly video newsletter the Wall Street Winner!]() How am I going to make money from this? You can play the downside by: - selling short XHB or ITB - Buying puts on these two ETFs - Selling short or buying puts on individual homebuilding stocks. Signup to Wall Street Winners to see how I'm playing it! The ULTIMATE Trading Education! Courtney Smith has put together an incredible site where he is brain dumping everything he knows about trading stocks and options. [Click here to learn more now!](=) One interesting thing is that the slowdown in the economy will slow the demand for housing. The slowing demand will reduce the number of houses built by the homebuilders. Since homebuilding the largest industry in the country then the slowdown in the housing industry will slow the economy. And around and around we go! We are going to enter a vicious cycle and the economy and housing feed negativity back and forth Words To Live By "…the pragmatic basis for the theory, a working hypothesis if nothing more, lies in human nature itself. Prosperity will drive men to excess, and repentance for the consequence of those excesses will produce a corresponding depression. Following the dark hour of absolute panic, labor will be thankful for what it can get and will save slowly out of smaller wages, while capital will be content with small profits and quick returns." Robert Rhea There, in one short paragraph, the great Robert Rhea sums up what causes tops and bottoms. Now apply that to the current situation. Last year, I started talking about all the excesses in the market that show a market making a speculative high: - Crypto - Nfts - Meme stocks - Stock buybacks - Takeovers All of these were highlighted by me last year and provided the background for my call that this year will be bearish with periods of neutrality and even a couple of small rallies. In fact, even though the market dipped 10%, it will like go even lower later this year and/or early next year. After that bear market we will look for ". Following the dark hour of absolute panic, labor will be thankful for what it can get and will save slowly out of smaller wages, while capital will be content with small profits and quick returns." And become buyers! But first, let's make money on the short side! Where to get more Courtney! Youtube: [Freebee Wall Street Winners]( Substack: [courtneysmith.substack.com]( [Profile Image] COURTNEY SMITH WealthBuilder LLC Work (702) 761-6837 | Text Message (702) 718-8588 Support@WealthBuilderLLC.com CourtneySmith.com Share The Love If you like Trade Secrets, then please pass it on to your nearest and dearest so they can sign up too. If you believe in the power of good journalism, make it something you subscribe to. Sharing is caring. [image] 1. Get your Option Strategy Guide and 7 Option Top Trading Tactics.[Click here]() 2. Health is very important at this time. Ian Cooper has a new report and LIVE trade sheet to learn which are the BEST Health care, Pharma, Biotech, Insurance Companies.[Click here](=) [image](=) [Unsubscribe]( WealthBuilder LLC 2340 Paseo Del Prado Suite D101 Las Vegas, Nevada 89102 United States (888) 464-8666