Why This Isn't A Bear Market

December 3, 2021

If the world was coming to an end, would Homebuilders be breaking out of 6-month bases to new all-time highs?

I would argue no.

The Homies are one of those groups we look to for leadership in strong markets, not in weak ones.

Do these look like charts you want to sell?

These are charts we want to be buying:

Both homebuilders and $TOL specifically have already been on our buy list.

But you can add Lennar to that group because it looks identical to Toll Brothers.

I like both of these long if they're above their Spring highs.

But the strongest of the giant homebuilders has to be $NVR:

If $NVR is above 5300 I like this long with a target near 6400.

And from a macro perspective, big picture, to help answer the question, "Do we want to be buying stocks?"

Homebuilders breaking out helps make that answer a resounding yes.

We go over many other factors to consider in this week's LIVE Strategy Session.

Make sure to give that a watch and download the slides if you haven't already.

Let me know what you think!

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