When an industry as highly leveraged as housing starts looking better technically, macro traders automatically assume it’s a pure interest rate play. A sign that the bond market is sniffing out an imminent drop in long-term mortgage rates.
And as far as I’m concerned, I don’t care about the reason. I’m a technician. So rather than hang on a post-mortem narrative and explanation (or excuse) for what a fund like the iShares U.S. Home Construction ETF (ITB) does, I’d rather stick to the basics.
