One of the argument you hear all the time: Charts are not useful in making the investment decision. This is one big myth. Let me shatter this myth.
Early this year: The State of Housing Construction in US
National Association of Realtors indicate that existing Housing inventory extremely tight and at 16 years low.
+ve for Housing construction
— Deepak Singh (@smarket) January 26, 2017
Following Price Action with Fundamentals
This means House construction set to pick up. No wonder House Building ETF set for breakout big pic.twitter.com/F8t4cI4KRl
— Deepak Singh (@smarket) January 28, 2017
What happened -No surprise here- ITB ETF broke out in Feb 2017.
Breakout = Investment Opportunity and see where ITB is 8 months later - Up 20-25% higher on a sectoral ETF 🙂
The above chart is a great example of how one can benefit by using both fundamental newsflow and chart to make a sound investment decision just on time
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers