Home Builders About To Feel The Wrath of The Titans

The FED tapering its QEternity Program, is probably the single worst news for Home Builders (Stocks), since the Housing Bubble Burst of 2008-2009. A market that is so fragile, even a slightest miscalibration can set off land mines all over the Fixed Income Markets. This bearish sentiment seems to be percolating into the Home Builders stocks, which appear to have formed, what Technicians call, a Head-Shoulders Top. This is a bearish pattern.

The following is a daily chart of the Home Builders ETF (XHB):

XHB - 7-3-2013

 

Recommendation: SELL @ $28.

Price Target: $24

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