KB Home’s stock surges ahead of earnings as Susquehanna expects orders beat
Shares of home builder KB Home KBH, +5.02% surged 4.8% in afternoon trade Monday, enough to pace the home construction sector’s gainers, after an upbeat call by analyst Jack Micenko at Susquehanna, a day ahead of the company’s (KBH) fiscal first-quarter results.
The company is slated to report results after Tuesday’s close.
Homebuilders On Pace for 6-Month Closing High
Homebuilders extended a three-day rally Monday, sending the S&P Supercomposite Hombuilding Index up as much as 5.8 percent during the advance — the most in three days since late January.
The rally means the group is on course to close at the highest last Sept. 21. All 15 stocks in the index are gaining in the wake of last week’s dovish Fed meeting. KB Home, set to report earnings post- market Tuesday, leads with a 5.5 percent gain.
Bond market says not only is a recession coming, but the Fed will cut interest rates to stop it
The bond market doubled down on scary warnings Monday, signaling both a possible recession is looming and that the Fed could have to cut interest rates this year to stop it.
“People are starting to get fearful,” said Andrew Brenner of National Alliance. “It won’t last for long, but they’re getting fearful about a recession. You had a Fed that changed course 180 degrees and then added to it last week. That caught the market off guard.”
Making Money 11 Days in a Row
Now, I’m going to get a little bit into what happened to me personally over the last couple of weeks to help you visualize success… I’ll say it, I’m a winning trader.
How I feel is the proper way and has proven over time, what is the proper way to handle trading? It’s a conviction and belief in yourself. Okay?
It starts with a belief and moves into proof of concept and your skills.
I personally had a few tough days on my strategy for probably two days of this month. Maybe three days. But I made a good portion of that money back the next couple of days by sticking to that strategy.
Prior to the couple of days that I just had that were tough days, I had 11 days in a row where I made money.
Now here’s the thought process. And I actually talked to a couple of traders in my mentoring room about this in the morning. The couple of days that I didn’t earn money but stuck to my strategy, they were all jumping off like it was the titanic, jumping off the boat saying, this doesn’t work, etc., etc.
You have to stick to your strategy, so when the strategy starts to unfold again, it’s the law of large numbers, if you manage your risk, your strategy should produce money for you over time if you manage your risk.
So, making money 11 days in a row, and then having two tough days, you can’t say on the two tough days, does what I do work? You have too much data if you’ve worked hard on your strategy to say my strategy works, right now it’s just not following through.
So, go back to those three things. Was it me trading like a dodo bird? Was it just a tough day to trade? Or did I do what I’m supposed to do what I’m supposed to do and something abnormal happened?
You should be mostly focused to become a winning trader on following your strategy flawlessly, providing you have a strategy. And then prove to yourself over a couple of months, assess what happened; you, the market, or etc., as we just went over with those three points.
So, I wrote in there, it wasn’t luck I had those 11 days in a row. I believe in my strategy, managed my risk when it didn’t follow through, and then in the following few days when my strategy unfolded, I made the money back.
And that’s how winning traders think.
So, to sum it up here, get yourself out of judging your results on a trade-by-trade basis. It has to be results over time as your strategy unfolds over time, and not every flip of the coin. For you to have the winning mindset, you have to believe in your strategy all of the time.
If it works and you have a couple of tough days, scale back a little bit.
Now, here’s an advanced tip. If you’re trading your strategy, and let’s say like I did, and I should have recognized it sooner but I didn’t; you have eleven days in a row like I did, and you get to a point where you say, today was a grind, something different was going on there.
And then the next day comes and not only did you stop the streak, but then the next day you lost a little bit of money, your alarm should be going off and be like, all right, we might be getting into number three where something abnormal might be happening here.
So, it’s your job to recognize, are the conditions changing a little bit, or is the rubber band being stretched a little bit further than what my strategy says I should be getting involved now?
And if it does my advice is just to scale back a little bit until your strategy starts to unfold cleanly.