September is on fire!
I told you the slower days of August were behind us…
Thursday saw the S&P 500 reach a new record high.
On top of that, Mondays have been lighting up like a Christmas tree for a while now. And the traders using my Monday Setup have been reaping the rewards.
If you haven’t heard about it yet, let me explain…
Every Monday, the market kicks back into gear after its weekend nap… And that reset creates a unique opportunity!
As the first session of the week gets started, there’s a specific pattern we look for, one that appears again and again with uncanny consistency.
And it has delivered some incredible wins!
Look at Monday, August 25th…
HCW Biologics (NASDAQ: HCWB) announced its development of a groundbreaking treatment for certain types of cancers… And the stock took off, gaining 113%*!
These are the kinds of morning spikes we hunt for every Monday!
Now I want to teach you how to spot them for yourself!
Watch the video below for the full trade breakdown and strategy tutorial for my Monday Setup.
But there’s more…
Something else big is stirring beneath the surface of the market. It’s not the flashy AI names or the usual tech darlings making the noise this time.
Instead, an entire sector is quietly lining up for what could be its strongest run in years.
Table of Contents
Lower Rates Could Supercharge Housing and Infrastructure
Whenever the Fed talks about cutting rates, certain stocks react in a huge way.
And while growth names like AI often grab the headlines, there’s another corner of the market that quietly explodes when borrowing costs fall: homebuilding and infrastructure.
I talked about lower-interest-rate plays the other day, but let’s dig in further to this sector.
So why do these names love a low-interest rate environment?
Mortgage Rates Drop so Housing Demand Surges:
When rates fall, buyers flood back into the housing market. Cheaper mortgages mean more home sales, more refinancing, and more demand for new construction.
Construction Financing Gets Cheaper:
Developers rely heavily on borrowed money. Lower interest costs make it easier to fund big housing and infrastructure projects.
The Ripple Effect Across Sectors:
Housing demand doesn’t just benefit homebuilders. It spills over into building materials, construction services, home improvement, and even mortgage originators.
Government Spending Tailwind:
When rates drop, governments often take advantage of cheaper borrowing to fund large-scale infrastructure projects like roads, bridges, utilities, etc. That fuels demand across the sector.
And speaking of government spending catalysts, another game-changer is on the horizon…
On Wednesday, September 17th, just after 2 p.m. ET, President Trump could roll out his boldest economic plan yet.
That’s why my friend and expert trader, Tim Sykes and $20M trader Jack Kellogg are going live this Wednesday, September 10th, at 8 PM ET with an urgent live briefing.
Jack is calling Trump’s next move “America’s Freedom Window,” and he thinks it could open up a trading opportunity unlike anything people have seen.
During this special event, he’ll be giving away what he considers the most valuable FREE trading idea of his entire $20M career.
Honestly, if you skip this FREE live event, you’ll regret it.
Spots are going fast, so register for America’s Freedom Window Summit ASAP.
What A Housing and Infrastructure Boom Means for Traders
Lower interest rates create a “rising tide” effect across housing and infrastructure, but not every stock reacts the same way…
Large-cap homebuilders tend to move more slowly, though they usually trend strongly in low-rate environments.
Mid-cap suppliers and materials names often benefit from steady demand tied to construction projects.
And at the more speculative end, small caps and penny stocks can see explosive upside as risk-on money floods into the sector.
Homebuilding and Infrastructure Watchlist
Here are some names I’d keep on radar when Powell follows through on rate cuts:
UWM Holdings (NYSE: UWMC):
One of the largest U.S. mortgage originators, UWMC tends to benefit when rates fall, as refinancing and home loan demand pick up.
This is a solid housing-related play for rate-sensitive momentum.
UWMC One-Month, One-Hour Candles Chart; SteadyTrade
Builders FirstSource (NYSE: BLDR):
Builders is a major supplier of building materials and construction services.
BLDR rides housing demand cycles, often trending higher when new home construction and renovations surge.
This ticker was an IRIS pick back in the day and has been one of my favorites ever since.
The stock is expensive, so if it’s out of your budget, consider using options to get in on the price action at a fraction of the price.
BLDR One-Month, One-Hour Candles Chart; SteadyTrade
Hawaiian Electric Industries (NYSE: HE):
A swing trade idea, HE provides electricity to 95% of Hawaii’s residents and offers financial services through its bank subsidiary.
As Hawaii’s primary electricity provider, it’s a critical piece of the local economy and infrastructure.
HE One-Month, One-Hour Candles Chart; SteadyTrade
GEE Group Inc. (NYSE: JOB)
GEE is a micro-cap staffing company. While not a pure homebuilding stock, JOB sometimes benefits from labor demand tied to construction and infrastructure projects.
As this is a highly speculative name, it is very volatile so GEE is suitable for day trading only. Don’t hold overnight.
JOB One-Month, One-Hour Candles Chart; SteadyTrade
To see all the stocks I’m watching, subscribe to my Daily Income Trader System.
With DIT, you’ll also get our Oracle tool, four daily webinars, trade alerts, and much more.
Learn more about it during one of our FREE daily webinars.
My Final Thoughts…
When interest rates come down, housing and infrastructure stocks often lead the charge.
- Homebuilders get a boost from cheaper mortgages.
- Construction & infrastructure names benefit from easier financing and government spending.
- Penny stocks in the sector can see wild speculative runs.
My advice? Don’t try to trade them all…
Build a tight watchlist of the highest-volume names, track key levels, and wait for confirmation before jumping in.
Because when rates drop, many of these stocks can move fast.
The traders who are prepared will be the ones catching the breakout.
Be that trader!
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
This winning pattern shows up day after day.
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