Trade Setup: Short XHB, homebuilders etf 1-12-2012 18.59
By Wen on 12 January 2012
| Symbol | Market Price | Entry | Stop | Position Size | Exit | Gain |
| Short XHB | 19.73 | 18.58 | 20 | 50% | 20 | 3.82% |
XHB is banged up against 2 year high. I personally don't believe that the market will take this lagging index to the upside until the market proves otherwise.
Some technical reasons.
1. The last bar has huge volume, a possible exhausion bar after a huge run up.
2. Up against 2 year high. Not likely to break it at least with some consolidation. In that case, I need to just get out if it doesn't crash back down.
Above 20-21 bucks, I am wrong and this thing could take off. I might consider long at that point.
Risk is about 8%, so 4 % of total portfolio at 50% position, if you want 3% explosure. Use 40% position instead.
Bulls very strong, homebuilders are getting bought like they are in 2007. Wrong side of the trade
