The markets are truly burlesque right now.
The mining stocks were hit a bit on Friday, although they bounced back nicely in the afternoon after an early shellacking. And the homebuilders experienced a “dead cat” oversold bounce, fueled by the insane spike higher in the Dow/S&P 500. On Friday it was almost as if the every time negative economic and geopolitical news/events hit the newswires, the S&P 500 would spike higher and the mining shares would get clobbered.
The mining stock trade idea that I published the week before last still has some very easy upside in it. This assumes that the mining stock sector, minimally, moves at least sideways and doesn’t get victimized by a manipulated shakedown.
The homebuilder short-sell idea has traded sideways since I posted my research report. It’s up only 20 cents from when I published the short-sell idea. This is vs. the DJUSHB index, which has bounced 1.3% since July 31.
I have been stressing that the homebuilders have dropped like a rock since July 24 and are overdue for an oversold/short-squeeze bounce. Read my report and let this bounce “ripen” and then start legging in to your short position in this stock.
Both trades should outperform their respective sectors. You can access either report by clicking on the icons below: