The Closing Print live trading and financial blog during market hours.

Home Sales and Unemployment

With new home sales at 10-year highs and unemployment at 48-year lows, we anticipate consumer discretionary stocks will prosper. Ukarlewitz post references the macro here.

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 Consumer Discretionary

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.

LGIH new home sales

We will start our LIVESTREAM broadcast at 9:20 AM.

Happy Monday,


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