Morning Comment: Housing Stocks overbought...Still bullish on energy.

Our calls on the housing stocks have worked out very, very well over the past year. We turned bullish on the group in the 4th quarter of last year...and reiterated that stance over the summer when the ITB home construction ETF broke a key resistance level. Both have been VERY profitable calls.

However, back in April we also said that the group was due for a breather...which is exactly what took place. Right now, despite some better housing data, the group looks ripe for another breather.

Moving to the energy sector, we believe the decline in crude oil of the past two days is nothing more than a normal pull-back after an historic rally on Monday. We also believe the attacks on the Saudi oil fields last weekend is a game it will raise the risk premium for crude oil going forward. Therefore, the energy stocks have some decent upside potential as we move through the rest of the year.

To read the details of our arguments on these two topics...and to see the charts we're looking at, please click here to subscribe to our newsletter, The Maley Report.

Matthew J. Maley

Managing Director

Chief Market Strategist

Miller Tabak + Co., LLC

Founder The Maley Report

275 Grove St. Suite 2-400

Newton, MA 02466


Although the information contained in this report (not including disclosures contained herein) has been obtained from sources we believe to be reliable, the accuracy and completeness of such information and the opinions expressed herein cannot be guaranteed. This report is for informational purposes only and under no circumstances is it to be construed as an offer to sell, or a solicitation to buy, any security. Any recommendation contained in this report may not be appropriate for all investors. Trading options is not suitable for all investors and may involve risk of loss. Additional information is available upon request or by contacting us at Miller Tabak + Co., LLC, 200 Park Ave. Suite 1700, New York, NY 10166.

Posted to The Maley Report on Sep 19, 2019 — 9:09 AM
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