economy

Josh Brown says this homebuilder is forming one of the most bullish chart patterns that exist

Josh and Sean discuss the appeal of old economy stocks and the cup-and-handle chart pattern.

Josh Brown says this homebuilder is forming one of the most bullish chart patterns that exist

TL;DR

  • Investors are favoring 'old economy' stocks over tech due to AI disruption concerns.
  • Homebuilders, specifically PulteGroup (PHM), are showing strong price action and bullish chart patterns.
  • Improved affordability is expected for home buyers, with mortgage rates lower and wages growing.
  • The U.S. housing market is estimated to be underbuilt by 3-4 million homes.
  • PulteGroup's stock exhibits a significant multi-year cup and handle formation, a bullish technical indicator.
  • Key support levels are identified at the 200-day moving average ($119) and a closing weekly drop below $120 signals a risk-reward shift.

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