Long
Huge RSI divergence. Expect a home construction boom in the USA
-commodities are correcting, while demand for homes keeps growing.
-I expect homebuilders to accumulate commodities at these low (and possibly even lower) prices during this time, replenishing their inventory.
-they'll be able to restart construction at even higher prices, at even higher profit margins (they're buying commodities at low prices and will sell manufactured products once demand will back in full; the spread will be huge).
-I expect a beat in Q4 and possibly Q3. We might see the 2013 peak again.
-I expect homebuilders to accumulate commodities at these low (and possibly even lower) prices during this time, replenishing their inventory.
-they'll be able to restart construction at even higher prices, at even higher profit margins (they're buying commodities at low prices and will sell manufactured products once demand will back in full; the spread will be huge).
-I expect a beat in Q4 and possibly Q3. We might see the 2013 peak again.
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