Home Sales and Unemployment
Watchlist for the Week
Many of the stocks on the watchlist are slightly higher this morning. Still, we won’t take any new positions until the opening range nearest completion at 10 AM.
We want the indices confirming a bullish tailwind for stocks. As we pointed out last week, sectors and indices alike are near cycle lows. We are waiting for the cycle to confirm a new bullish trend.
Restaurants and Bars
If more people have new jobs and the unemployment rate continues to drop, anticipate stocks in the consumer discretionary group to gain momentum. SHAK, SBUX, DFRG, CAKE, and SONC are potential candidates.
SHAK is scheduled to report earnings on 05/02/2018.
New Home Sales 10 Year Highs
XHB is currently forming a base along the 200ma. The next leg will most likely start a bullish trend or Phase II cycle up. The bullish trend in home sales reflects the increase in the number households gainfully employed.
LGIH is in this group, carried over from previous watchlists. The company reported closing on more than 1,200 homes in a recent report, an increase of more than 60%. Look for stocks in this group to move together.
We will start our LIVESTREAM broadcast at 9:20 AM.
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.