A counterintuitive contrarian approach to trading the Homebuilders (ITB)

I've been trading with a combination of technical analysis, fundamentals, and market sentiment for as long as I can remember...

There is one key to this puzzle that Always gives me a bit of a funny feeling in my gut, and that'd be the sentiment.

Everybody has a different way of looking at the sentiment of the market, even though, it's really as simple as just asking somebody if they like something or not, the use of it goes much deeper than that...

In practice, sentiment is a contrarian indicator, meaning that doing the opposite of what the crowd is saying...

It makes sense if the crowd runs into a trade, they'll have to leave eventually and that drop back down is where you can capitalize.

Check out this clip from the Long and Short of It where I break down the counterintuitive contrarian reasoning for why the IShares US Home Construction ETF (ITB) is at the top of my ETF watchlist:

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About the Author

Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.

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