Excerpt from Nov 22 edition of Rareview Macro’s “Sight Beyond Sight” morning commentary; courtesy of macro market trading expert Neil Azous..
At a micro level in the US, all one has to do is look at the iShares U.S. Home Construction ETF (ITB) and SPDR S&P
Homebuilders ETF (XHB) to see the new found interest in the return of the Housing recovery call come early next
year.
The Bloomberg Chart of the Day illustrates that between Nov 15th and January 31st the S&P 500 Homebuilding Index has come out ahead of the SP500 every year since 2005, and led last year by ~17%. The Raymond James analyst who is the source of this observation said this “…might be the most powerful and consistent seasonal trading phenomenon we’ve witnessed among any industry group.”
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