Shorting the Homebuilders ETF

$XHB

I put a short on in XHB 0.00%↑ today for a short term trade. This is one of the most complex and important industries in this country. There are macro concerns around interest rates, mortgage applications, and supply levels. I’m not qualified to opine on what these factors mean long term, but I can observe that the XHB 0.00%↑ , which is up nearly 28% on the year, may need to digest the gains it’s made to this point.

It’s worth noting that November is a seasonally strong month for the $XHB. This is very much a short term trade for me as I look to balance the abundance of long equity exposure I’m accumulating due to the massive run ups in long term winners in my portfolio. (So please take this as my disclaimer that this is what I am doing with my trades)

The XHB 0.00%↑ today dropped below the AVWAP from the most recent gap up. This is where I am going to risk manage this trade, There are a pair on unfilled gaps below , which are acting as my “upside” areas on interest for the trade.