UWMC: Relative Rotation

Greetings Gents,

I'm planning to continue doing weekly relative rotation analysis of the market, but wanted to create this mid week post to take a quick look at UWMC. Please let me know if another flair is more appropriate.

I'm not going to get into the financials, since plenty of solid DD has been done on that already. However, I did mention in my last post (analyzing the market sectors) that I would look into positions related to the real estate sector (XLRE).

My thought process here it to take a look at the short term momentum for this stock due to the recent positive earnings, great financials, positive future outlook, and upcoming June Ex-Div date.

Lets jump into it and make it quick…

Since there is a lot of talk regarding Russell inclusion, here is the RRG of UWMC again UWM:

Looks like we have strong short term momentum when compared to the Russell 2000

Now for SPY:

Starting to take off with solid momentum towards leading.

Finally, XLRE:

No surprise. Similar to SPY

My Thoughts:

Personally, the company has strong fundamentals. So, in combination with the momentum, I think its a decent "buy" (this is not professional financial advice).

I'm playing this 3 ways:

6/18 short put x 2 @ $7

7/16 long call x 5 @ $6

1100 shares @ $8.06

Edit 1: Silly me, I forgot to mention that a share buyback plan was approved which also contributes to the positive momentum.

TL;DR: UWMC looks good. πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€

submitted by /u/Old_Prospect
[link] [comments]

Jump To The Original Source

Share this Story
Load More Related Articles
Load More In Stock News

Facebook Comments

Check Also

Removal of foreign fighters in Libya tops agenda at Berlin conference

Published by DPA The foreign ministers of the ...