Make Yourself at Home

The housing sector continues to thrive to little fanfare, with homebuilders front and center in the ITB and XHB sector ETFs. Beyond some well-known builders like DHI KBH PHM are lesser-known but high quality ones like LGIH MDC SKY, among many others.

For a while now, we have been tracking the relative and absolute strength in this sector both here and for Members. And if yesterday's heavy selling in software (e.g. AYX NOW RNG SPLK WDAY) proves to be a one-off phenomenon which does not spread to the rest of the market this time around (and it seems so with markets more positive on MS and NFLX earnings this morning), it is hard to ignore the possibility for further upside in the housing sector as the fourth quarter of 2019 unfolds. 

Finding plays ancillary to housing remains of interest, too. HD and LOW are some obvious, perhaps too obvious ones. But a name like Helen of Troy Limited, which is hard to forget, features a sizable houseware component to its roughly $4 billion business On the HELE daily chart, below, you can see the recovery from last week's earnings volatility.

The overall chart remains strong, however, and this would seem to be another name like RH WSM which is capable of benefitting nicely from what figures to be some type of mini housing boom still in progress.