Trade of the Week

DHI’s Quiet Strength

Markets may be choppy, but one sector is quietly ripping—homebuilders. While most indices gapped lower Tuesday, DHI (D.R. Horton) held firm. That’s relative strength, and that’s our edge.

This week’s setup comes from our momentum strategy: 48% win rate with average winners outpacing losers nearly 2:1. We're looking at a textbook bull flag—strong push, sideways consolidation, and now a potential breakout.

Trigger was ~$170.50, right at a multi-week resistance zone. If it holds and pushes, the next logical magnet is the all-time high near $200. That’s a clean risk/reward profile for a weeklong trade.

Market-wide weakness makes this one stand out even more. SPY and QQQ were red; DHI stayed green. That kind of divergence doesn’t lie.

Watch for early-week follow-through. If it rips too far too fast, don’t get greedy—this system banks on consistent execution, not home runs.

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