Forget the Fed! These Stocks Are Jumping No Matter What...

Will it or won’t it?

That’s the question on every yapping head’s lips these days. That is, will the Fed hike interest rates later this week or won’t it?

That’s right. The Federal Open Market Committee is getting together later this week to determine the fate of this universe – and any other. The fun and games begin Thursday, in case you want to set your doomsday watch.

But whatever our masters decide this Thursday afternoon, the market will continue to spaz out. As I explained yesterday, stocks are a hot mess right now. In this highly-correlated market, everything’s chopping along in unison. It’s nearly impossible to find an edge—unless you’re looking in the right places.

So today, I’m going to show you the right place to find that edge. All you have to do is locate the one group of stocks that’s stormed right through this whole market downturn as if it never happened…

And wouldn’t you know it? One of the best performing groups out there right now is one of our trades of the year — homebuilders.

Don’t believe me? Take a look at this chart…

What Correction?

Over the past three months, the iShares Dow Jones U.S. Home Construction ETF (NYSE:ITB) is up nearly 5%. Sure, the homebuilder ETF dipped during the market’s August selloff. But it’s shaken off this hit like a champ and is going on the offensive again. Now it’s back up near its highs. And the S&P 500? Down almost 7% over the same period. Ouch…

And even as the financial media rate-hike coverage moves to DEFCON 1, homebuilders continue to find strength as we approach “Fed Day”…

“Homebuilders were one of the strongest stock groups on Friday,” explains John Murphy over at Stockcharts.com. “More importantly, they’re also the strongest group over the last month and the last three month periods. That’s impressive given a soft stock market.”

Impressive? I’d say!

So forget about the Fed and focus on the one group of stocks that doesn’t give a hoot what the heck Janet Yellen says… Homebuilders.

Regards,

Greg Guenthner
for The Daily Reckoning

P.SStop paying attention to the Fed and start paying attention to housing! If you want to cash in on the biggest profits this market has to offer, sign up for my Rude Awakening e-letter, right here. Stop missing out. Click here now to sign up for FREE.

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