Time to “Remodel” Your Portfolio

Housing data is still in a slump and there are no signs of it getting better. However there is one part of housing that’s doing very good—and that’s “Remodeling”. The remodeling index is bursting into new highs (albeit its less than a decade old). It totally makes sense why remdoeling is doing fine. Those who have homes cant buy or don’t want to upgrade into a new home, so they just remodeling the home they are living in.

The Index


YoY Change


How To Play It

$TOL – Toll Brothers Inc.

While this is a home builder, Toll Brothers caters to the once section of the population that is doing very well and that is the wealthy as they are involved in building and designing luxury homes and “converting rental apartments into…luxury homes”.

TA-wise, the stock has been doing great and has seen great accumulation over the past months. A dip to the 200 day moving average would be a good spot for an entry long. The stock is also going soon going to see a golden-cross (50 day croses above the 200 day), which is bullish.

















$VAL – The Valspar Corporation

The Valspar Corporation is a global coating and paint manufacturer and distributor. Not the sexiest name to own but as it hits 6 month highs today, it is hard to deny the relative strength. I would like to see more volume but as we get a golden cross, this turns into a buy on the dip candidate (watch 50 or 200 day for entries).

















$SHW – The Sherwin-Williams Company 

The Sherwin-Williams Company is engaged in the development, manufacture, distribution and sale of paint, coatings and related products. The company is very similar to $VAL. The stock is on the verge of a major breakout over the ~88 level which would put it at a new ALL-TIME high. The volume has not been great here as well, but if we get some solid consolidation before the breakout, a long entry here is not a bad idea. If not, watch the 50 day for an entry as well.


















$MAS – Masco Corporation

Masco Corporation manufactures, distributes and installs home improvement and building products. While the chart has not been great, it is in the process of potentially bottoming with a Cup N’ Handle/Rounding Bottom formation. If it can hold above ~9.75, I don’t see why this cant rally to ~12.50. The volume has been solid and the chart has been making higher lows since the October low.

















$HD – The Home Depot, Inc.

Home Depot is a home improvement retailer that sells an assortment of building materials, home improvement and lawn and garden products and provide a number of services. The chart has been on a monster run with volume lately. I would wait for this to dip (on light volume) and I would stalk an entry around the 38.50 level and/or the 50 day. With today’s move, it hit a new 4.5 year high. I don’t see why this cant test the all-time high around 44 next year.

















$LOW – Lowe’s Companies Inc.

Similar to $HD, Lowe’s is another home improvement retailer. The stock has not been as strong as Home Depot, but nontheless has been stronger than the overall market. There is solid accumulation (as shown by volume) and the stock has plenty of upside room.


















Tags: $XHB

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Jerry Khachoyan Blog