I emailed my real estate buddy friday and told him those buying now will be viewed as smart in a few years. Have you listened to the news today? Housing problem not looking so bad as thought headlines are coming across the wires. Think they are done accumulating now? No reason to change to positive from negative until buying is complete. Buy low, Sell High. A few weeks back I mentioned to Apex about a few new hedge funds that were created focusing on real estate.
Also we are moving into a lower interest rate environment with obvious added liquidity. Anyway, do not want to change the subject, back to ES.
I have been watching these for a month or 2. I got in a few weeks ago in KBH but got out when the market turned. They are looking really nice for a long term trend change. I am being patient for one more low in HOV, CFC and KBH and then im buying them hand over fist. If they break out I will just get in on a retrace. They look ripe to double or triple over next year.
if that weren't a stock I would have estimated $20 as 1st target objective, weekly divergence average range. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1709111>
That is my thinking as well, there certainly is more bad news to come but its hard to say whether the market will discount it. Now, tomorrow is fed day, have no idea but will say 50 basis cut and ensuing rally. Is the consenus .25 , anyone know what the fed funds is pricing in?