2020 Actual Trade: PHM +18% Profit

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
Share This Post
Have your say!

Leave a Reply