Morning Update
The Housing Index - Philadelphia (HGX)
As you may be aware, our focus has been shifting into the homebuilder sector. The weekly chart of the HGX shows that it is in a neutral symmetrical triangle pattern. The pattern could also be a failed topping pattern. We are still waiting for a confirmation break out above 272.50-273.00. Price target is around $340.00-$350.00. When this breakout happens it will support our homebuilder portfolio stocks and they will start to move up very fast. The only homebuilder stocks that we currently own in the portfolio are: MTH and WLT. We are waiting on entry into RYL, MTH and BMHC with a confirmation breakout on the HGX.
The S&P Retail Index. (RLX)
In order for the broader market to really rally, we will need the homebuilders, retail and chip stocks to start participating. It looks as if this is beginning to happen. The daily chart of the RLX shows that it is in a bullish ascending triangle pattern. All indicators and oscillators are bullish. Today the RLX is up 0.33% at 480.90, which is only 9 points away from it's 52 week highs.
The Semiconductor Index (SOX)
The weekly chart of the SOX shows that it is currently in a wave 3 to 4 pull back. The moving averages are holding up nicely and we re just waiting on a reversal to the upside. It is highly unlikely that we will cross the 200 week moving average. Consequently, I added SINA to the portfolio.
