I’d like to tout symbol XHB once again, because it is probably my favorite long-term short among the fifty ETFs that I follow.

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This fund is for the homebuilders, and it has banged inside this channel for literally decades. We are quite lofty in the context of this pattern. I am maintaining my position, which is January 2026 (yep, one whole year out) puts. They’re up 13% so far, but I deliberately made these VERY long-dated, because I want as much juice of this lemon as I can get.

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What would accelerate the downfall of the homebuilders would be a resumption of interest rate strength. Keep an eye on the /ZB, which, already in its 5th year of a bear market, looks potentially to weaken beneath the latest reversal top that I’ve highlighted.

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Doc Copper
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