Your Second Shot at an Undercover Rally

However, there is some upside to the horrible winter weather. For instance, you can now buy one of my favorite plays for 2014 on sale as it bounces off support. The undercover rally continues--now's your chance to jump on it. March 19, 2014     Your Second Shot at an Undercover Rally   Forget the snow--buy this sector Coming soon: a new market leader Plus: The Fed strikes again...   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner Bad weather has been the go-to excuse for soft earnings this season. Didn't sell as many DVD players as expected? Blame the snow. Hamburger revenue down? No worries. Nobody eats when it's cold, anyway... However, there is some upside to the horrible winter weather. For instance, you can now buy one of my favorite plays for 2014 on sale as it bounces off support. The undercover rally continues--now's your chance to jump on it. I'm talking about the homebuilders. Here's the story... The iShares Dow Jones U.S. Home Construction ETF (NYSE:ITB) finally started to outperform the broad market toward the end of January. The S&P was slumping, but ITB marched higher. After emerging as a new leading sector, homebuilders took a break. ITB dropped down to earth in March. After soaring ahead of the broad market, the construction index is essentially flat on the year... The S&P 500, in contrast, is up nearly 1.3%. Of course, many industry folks are blaming bad weather for some of the lackluster numbers that have helped sink housing stocks lately. But here's the thing: Unlike some of these weather-related excuses for bad retail numbers, the snow and extreme cold actually impact the construction business... "You can see how weather is impacting the data," reports Bespoke Investment Group. "Both the Northeast and Midwest were the most impacted by the weather this winter...they are both well off their recent highs.  In the South and West, where weather has not been as much of an issue, though, Housing Starts remain right near their post-recession highs." As I said back in January, I think this noise is creating yet another buying opportunity for all things housing related. A significant move higher in these homebuilders will probably take a lot of investors by surprise. After sitting out for most of 2013, many of these construction and homebuilding names are beginning to sneak higher. Remember, both the home construction ETF and the retail-heavy SPDR Homebuilders Index ETF (NYSE:XHB) underperformed the S&P in 2013, while home prices actually increased 10.9%. That marked their biggest annual increase since the bursting of the housing bubble--and homebuilders spent the year consolidating instead of ripping higher. ITB is your best shot at a longer-term trade. I still like the ETF as a buy-the-dips play. If you're looking for the best individual stocks in the sector, check out my two picks in the PRO today...         Maryland Man Makes Shocking On-Camera Confession: "I Can Make More Money Per Hour – On My Lunch Break – Than I'll Ever Get From My Day Job" Discover the incredible, TRUE story of an average office worker who secretly collected $450 per hour on the side… Click here now to get the full story.           Rude Numbers Targets, Predictions and Wild Guesses   $15 billion could be fetched by the imminent IPO of Chinese internet giant Alibaba. That would put Alibaba right behind Facebook's massive 2012 offering of $16 billion. 2000 was the last year Microsoft shares traded at their current levels. The stock jumped 4% yesterday off of news that Microsoft Office is coming to the iPad. 6 years ago, Visa held its initial pubic offering. It's now the 25th largest company on the S&P 500 and a Dow component... $1,346 marks the spot for gold futures this morning. After what appeared to be a powerful breakout, gold has dropped more than $45 in less than 3 days... 1,865 is where you'll find S&P futures before the morning bell. The broad market is inching slightly higher in premarket trading...     Rude Trends When to Buy... When to Sell   Happy Fed Day! Stocks will probably stay quiet until early this afternoon while everyone waits (and debates) what the Fed will do. But the charts have already spoken... Stocks are recovering from a few down days and are back to pushing toward new highs. Despite what any of the crash police are telling you, this remains a buy-the-dips market. As always, your best course of action is to ignore the alarmists and continue to let the market guide your investing and trading decisions. If you want to survive this market, you must pay attention to the charts. It's the only way to book consistent gains... [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   Discovered: Tax-Free Income Made Easy Become practically invisible to the NSA for the price of a fast food value meal U.S. Mint to Devalue Your Money     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. 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