30Jul10:17 amEST

Bears Trapped on This Deck

In an otherwise slow pre-FOMC tape today, Trex Company, the leading recycled materials manufacturer of wood-alternative decking, railings and other outdoor items, is a notable bright spot. 

We tried a long in TREX in recent weeks but soon surmised that the stock was likely waiting on earnings to make some type of move. With this morning's sizable gap higher, bulls clearly control this interesting play related to housing. 

Along the lines of Zillow and retail plays like WSM, the market sure seems to favor quality housing-related plays almost instead of actual, direct housing plays like homebuilders. Either way, TREX is flexing on the weekly chart, updated below, to set in motion a potential new leg higher into back end of 2019. 

Going forward, as long as TREX holds dips down to $72.50, I view the breakout as legitimate and worth of being stalked for quality entries. 

Elsewhere, the BYND earnings selloff seems to have taken extra air out of the tires for now, beyond the trade war headlines and angst about the FOMC tomorrow, not to mention AAPL earnings tonight. I am taking things slowly and looking for a new round of entries later this week in various asset classes.

For now, though, my main focus is on not forcing in trades. 

Stock Market Recap 07/29/19 ... At Least Some of it is Baked...


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