Short Homebuilders ETF (XHB) Amid Recessionary Housing Signals
about 2 months ago
David Hay
"I'm short a bunch of XHB. And I've had a kind of mixed success with it because it had a big breakout a couple of years ago. And then I shorted a bunch when it was up and covered."
Due to a deteriorating housing market with starts and permits down roughly 20% YoY and a widening gap between new and existing home prices, the fundamentals for homebuilders have worsened. XHB is cited as being near all-time highs despite these recessionary signals, suggesting traders could consider bearish positions (such as short selling or buying puts) on the homebuilders ETF.
Scores
Alpha Potential
7.5/10
Novelty
7.0/10
Credibility
7.5/10
Timeliness
8.0/10
Overall
7.5/10
Sentiment
Bearish
Conviction
High
Tier
Market Context
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Episode Information
Episode:
Increasingly Strapped Consumers Are Tapping Out | David Hay
Published:
September 7, 2025
Idea Type:
Stock Idea