And carters charting was an itb. Do those charts look at dire as its provided quite a bit of defense. Xhb has only been down about 4 this week, actually up significantly today while the markets were flat. So im not as bearish here on this particular sector but i do like mikes trade here. Because even if the sector drifts sideways, as mike says, he can actually still remain neutral on the sidelines with this particular trade. I like the strike prices too the fact that he bought the 50 strike price, thats slightly out of the money that means that hes risking less capital on that january 50 put. And by selling that october 48 put, hes actually collecting a fair amount of premium that even if this trades sideways, hes not going to necessarily take on a loss mike, last word yeah. I think one other thing to remember is that those january options capture a lot of things that the october options lbt, which is not just the last upcoming earnings that were seeing, but of course ones that were go
Hell show you how to plug in with the right circuit breaker. And in this market, elmer fudd might have said, be very quiet, im hunting yield but in either trading or toons theres always a pesky wabbit to beware of. Options action starts right now lets get right to it the Home Construction trad on fire this year with both the xhb and itb up double digits the rally comes as Mortgage Rates hit new lows and home bound americans tackle Home Improvement projects but our chart master carter worth tells us this could be on shaky ground carter, what are the charts telling you . Well, the question is at some point is a lot or everything priced in. Its been a great area obviously we know the story thats been in the news about refis and Home Improvement and we know the earnings have been great. But at some point sometimes an area of the market is full, is rich i think thats the premise here. Lets look at a few charts the first is a twopanel all youre looking at is the Home Construction etf on the
Dow plunging and s p plummeting 2. 78 . And the nasdaq nosediving 4. 11 . Its tempting to try to learn something from the big bone crushers of the past so we can apply those bone crushers to the future two are alike but there can be similarities take the. C do. Com bust. The endless run from 1998 to march of 2000 followed by a rapid meltdown, what is happening here now, now that the nasdaq is 10 from size, im hearing about the buzz all day okay, the beat of 1998, the nasdaq stood at 1,585. 1,585. It roared to 5,100 by march of 2000 and plummeted to 3,155 by may. Fast forward to 19 year ago and a round trip to 1 ,585 it is your Worst Nightmare of course, there are horrendous sell offs. The 87 crash averages cut in half in a few hours time the financial crisis, dallas laid the waste from 14,000 to 6500 and the covid crash dow from 295 to 68 to above 18,000 march lows. Nasdaq sank. But its that rebound from the march lows thats drawing comparison to the. Com era the nasdaq surged 82 from
Zhang thinks this Old School Auto maker has a better grasp of the future than many give it credit for hell show you how to plug in with the right circuit breaker. And in this market, elmer fudd might have said, be very quiet, im hunting yield but theres always a pesky welcome ba wab wabbit to beware of. The Home Construction trade on fire this year with both the xhb and itb up double digits the rally comes as Mortgage Rates hit new lows and home bound americans tackle Home Improvement projects carter, what are the charts telling you . Well, the question is at some point is a lot or everything priced in. Its been a great area obviously we know the story thats been in the news about refis and Home Improvement and we know the earnings have been great. But at some point sometimes an area of the market is full, is rich i think thats the premise here. Lets look at a few charts the first is a twopanel all youre looking at is the Home Construction etf on the top. The bottom is relative perform
Of people. Much like us, advantage with jobs, but the United Kingdom request of aid is extraordinary, the size of people struggling. Francine that figure which you say is very much like we are seeing in the u. S. , was quite shocking. We know this is big and millions of people are losing their job, but the government saying 66 of businesses have asked for Government Support to pay wages. When you look at what Central Banks can do and this was clear from jay powell yesterday if you look at the stimulus they are putting in place for the recession are when the pandemic is here, now, and the second phase when a recovery takes place, three months, six months, even longer, what kind of tools and stimulus support will need then. Tom it is absolutely fascinating. ,or those waking up in america i cannot convey that rotation of earth and data coming out of asia. Data hasy of european been absolutely shocking this morning, and we will give you a brief on that. Us Nouriel Roubini will join and we