In our February 22nd 2017 report, entitled SPDR Homebuilders ETF (XHB) Resuming Its 2016 Uptrend (access requires subscription), we said:
The SPDR S&P Homebuilders ETF (XHB) appears to be resuming its 2016 uptrend following an August 2016 corrective decline. This week’s emerging breakout in XHB targets an eventual, additional 26% rise to 45.50 per share that will remain valid above the 34.16 area.
Here is the chart from that report:
The next chart, an updated version. shows that our $45.50 per share target was met yesterday, January 3rd, to capture a $9.65 per share, 27% advance in just a little more than 10 months.
In addition, XHB outperformed the benchmark S&P 500 (SPX) by 7.3% during this holding period, which is particularly difficult to do within a market environment like we had in 2017 when the US stock market seemingly rose every day, without a correction.
We publish these notifications for 3 reasons:
- to let Asbury Research subscribers know when to consider taking profits on existing positions,
- to let non-subscribers track what we are doing in the market, in real time, and
- to make everyone aware of a potential upcoming price reversal as price advances often end as upside targets are met and more savvy investors take profits.
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