ACI CEO Todd R. Walsh was recently quoted in Barron’s to discuss rising mortgage rates, their effect on housing ETFs, and predictions for the 10-year Treasury yield.
Here is an excerpt below from Barron’s:
“Todd Walsh, CEO and chief technical analyst at Alpha Cubed Investments, also noted that the two housing ETFs are trading below their 50-day and 100-day moving averages. There could be more downside ahead.
Walsh said investors should keep a close eye on the SPDR S&P Homebuilders ETF, which has fallen from a recent high of around $125 to about $102. He says if the ETF falls much below $100 — which he describes as a line in the sand level for the ETF — ‘that will trigger a longer term technical sell signal unless and until it reverses.’
Walsh also predicts the 10-year Treasury yield will continue to drift higher, a ‘measured move’ that should push it up to about 5% in the short term. That’s another bearish sign for the builder stocks for the foreseeable future.
‘The best course is to be cautious here and let this move play out before trying to jump in and catch any bottom,’ Walsh said.”
Click Here to Read the Full Article in Barron’s
