12/29/19

DHI Divergence:  Monthly, Weekly, Daily

The monthly chart has DHI at a long term Fibonacci projection while posting bearish divergences on three time-frames.

On the daily chart (not shown), price action has been trending lower but quiet.  Volatility and option prices are low at this point.

Note that on both the Monthly and the Weekly time-frame (not shown), MACD is bearishly divergent and is posting a lower bar.  Upward momentum appears to have evaporated.

This is the 'danger point' where risk (of a short position) is least.

12/21/19

Break & Test:  DHI in Danger

When a trend line has a decisive break, typically there’s a rally to test.  DHI is testing the underside of its break. 

Monday 12/23, could see a brief effort to post a new daily high before rolling over.  If so, that would make it a Fibonacci Day 8, from the highs of December 12^th. 

As reported by The Money GPS, the market is being held up by gargantuan money printing efforts.  It  may all break down in the coming year.

On a separate, but related topic is this.  Buried within the comment section of the above link we have:  

“This week out of the blue, a local roadhouse grill added 3% to the final bill due claiming ‘due to increased food costs’.”

For more on the collapse of the global food supply, reference this link.