Be Suspicious of any Market Strength -- Especially in the Homebuilders

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 |  Includes: GLD, SPY, USO, XHB, XLY
by: David Fry

Hovnanian (NYSE:HOV) loses less money than expected and we have a very heavy volume rally in the Homebuilders’ ETF (NYSEARCA:XHB):

There’s nothing inspiring about today’s market action. I’m suspicious of the rally in XHB and the Consumer Discretionary SPDR ETF (NYSEARCA:XLY), while other important market sectors struggle. It seems a “managed” market.

Aloha.