[gbarbs]

I am not up to speed on the stage A & B's yet. I'll need to read the site. Now, I only know what I know from the book and have not ever discussed with anyone else or have ever seen any of the GTA's. So I will read the site and learn the A's & B's. Having said that, I did recall that shorting is ideal when everything is looking bearish, so I was looking at this as a possible small position to test the waters. I am not seeing the homebuilders chart the same as you. There is a chart in my brokerage site that is a little different and it appears they have their own list of stocks to represent the group. That is attached and looks like its broken down whereas the ITB has not (although it looks like it broke a trendline). The fact that it has dropped well below the MA I think is what gives me the stage 3 impression. Also, I went through the list of stocks in ITB. I came up with:
1 stage 1
9 stage 2's
12 stage 3's
6 stage 4's
4 I could not decide stage 2 or 3
1 I could not decide stage 3 or 4.
Also, you mentioned the MA is rising, but not very much. The EMA started to decline.
I am not convinced enough to short anything, especially with the high short ratios its just another reason to wait.
Charts attached for ITB and the homebuilder group from TD