Monday, November 21, 2016

Home Construction (ITB) Following The U.S. Dollar

As I stated yesterday and on Twitter the U.S. dollar I think is going to take a bit of break after it's meteoric rise of late. An ETF that I have been following but haven't published much on, the Home Construction ETF ITB, has been on an absolute tear as it's followed the dollar since early November. I made a long/buy call around that first week as the EMA(9) and (5) started converging. Since then we've come up to a nice set of resistance areas with the MA(144) over-head and the highs from September and October 2015. Now would be a good time to cover profits and prepare for a pullback to around $26.90.
Additionally, if you look at the 30 minute chart a bearish rising wedge is being put in too. I'm sure a new buying opportunity will present itself but now is the time to take money off the table or hedge with a small short position.