Trading XHB - Homebuilders SPDR ETF and RYL - Ryland Group Inc
Well I bought a partial lot in both the XHB - Homebuilders SPDR ETF, and RYL - Ryland Group Inc.’s stock this trading session. These homebuilder equities have both been on fire, and are breaking out of some extended bases. The action in the stocks could be better, but I bought some of both today strictly because of that action.
I could be wrong, and that’s why I only held over a 1/3 lot, but it felt as if those in charge of these trading vehicles today were trying to shake out the longs. I actually like the fact that the stock and ETF didn’t extend themselves with closes at the day highs.
I’ll give both about a point stop from entry, which is under the previous daily trailing candlestick on each. That will be raised to the next trailing bar low the following day, if RYL and XHB aren’t stopped tomorrow.
You can see on the XHB weekly chart that the homebuilders are entering some open ground, after the steep slide the sector was hit with late last Spring. We’ll see how these swing trades play out in the next few days.
November 20th, 2006 at 9:07 pm
[…] I’m in light day trading mode. I’m really waiting for those trading patterns to play out fully. With the market playing a game of Russian roulette on each break higher, I’m content staying patient with the trades. I’m still in the RYL and XHB long trade. The stop-loss moves to .20 below the daily low for each stock. The OIH is staying close to it’s 20 day moving average after the fall last week. I exited that trade the same day. As for today, the morning list of gapping stocks included KNOT - The Knot, Inc. This stock looked interesting so was put on my stock picks to watch. […]
November 26th, 2006 at 8:48 pm
[…] The RYL and XHB trades were stopped on Friday with gains. The homebuilders gapped higher Wednesday, but breached my trailing stops on Friday . The 200-day moving averages directly above still look in play though. […]
December 2nd, 2006 at 8:55 pm
[…] Two weeks ago, I pointed out the strength in XHB, the Homebuilders SPDR. I was also trading RYL - Ryland Group Inc., and DHI - DR Horton Inc., in the group. The trades worked out ok, but I failed to do one thing. I should have kept my eye on the sector, for a pullback trading pattern, after the breakout. The stocks in the group made a sweet move higher on Thursday, with RYL extending the move on Friday. […]