August 19, 2020, 2:38 pm EDT
2020 Actual Trade: PHM +18% Profit
Home builders become a demanding asset again during pandemic. There are multiple factors contributed to uptrend rally of home builder stocks:
- Low interest rate and market friendly Fed policy
- Committed government support for US economy for individual and corporation
- Return of manufacturers from China during trade war
Our observation to get into home builders on July 22 was published in the article “Home Builders Surge”. Highlights points are:
- Majority home builder stocks were rising on 07/22 including NVR, PHM, LEN, DHI, TOL, KBH and ETF XHB was up +3%
- Technical setup is completed with a solid two-month base from 05/22 to 07/22
- 07/22 was the breakout day so it was the right time to get into it
- PHM made a strong rally within a month with all other home builders so it finished +18% profit within a month
