Captures CRH price trends driven by construction cycles, infrastructure spending, and economic growth
| Strategy Type | Momentum / Trend Following |
| Market Outlook | Captures CRH price trends driven by construction cycles, infrastructure spending, and economic growth |
| Risk Profile | Moderate Risk (Cyclical exposure, but diversified geographically) |
| Reward Profile | 2:1 to 3:1 Risk-Reward in construction uptrends |
| Time Horizon | Medium-term (Weeks to Months) |
| Iv Environment | Works best during clear construction/infrastructure cycles; struggles in uncertain demand environments |
| Breakeven | Entry Price ± Spread + Commission |
| Primary Instruments | CRH (NYSE Primary in USD), CRH.L (London Secondary in GBP) |
| Mas Compliance | MAS regulated brokers required; foreign stock trading permitted |
| Trading Hours | NYSE: 9:30 PM - 4:00 AM SGT; London: 4 PM - 12:30 AM SGT |
| Contract Size | Shares or CFDs; fractional shares available at some brokers |
| Settlement | T+2 for shares; instant for CFDs |
| Tax Treatment | No capital gains tax for individuals in Singapore; US dividends subject to 30% withholding (reducible with W-8BEN) |
| Stamp Duty | No UK stamp duty on CRH (Irish company); none on NYSE |
| Cdp Account | Not required for foreign stocks; custody with broker |
| Singapore Relevance | CRH supplies building materials globally; infrastructure development in Asia relevant to construction sector |
CRH is one of the world's largest building materials companies. Products include aggregates (crushed rock, sand, gravel), cement, asphalt, and ready-mix concrete. Main markets are US infrastructure and housing construction. NYSE-listed with global operations.
Golden cross is when 20 EMA crosses above 50 EMA. It's the primary bullish entry signal. Strongest when price is also above 100 EMA (major uptrend confirmed). Signals start of uptrend.
US infrastructure spending (IIJA = $1.2 trillion) is CRH's major growth driver. Roads, bridges, highways require aggregates, asphalt, cement. CRH directly benefits. US is ~60% of revenue.
Death cross is 20 EMA crossing below 50 EMA. Exit signal - uptrend is ending. Exit all long positions regardless of profit/loss. Don't try to hold through death cross.
Stop at 2× ATR below entry or below 50 EMA, whichever is tighter. After 1.5× ATR profit, trail stop at 2× ATR. Death cross is also exit signal regardless of stop.
Strong seasonality: Q2-Q3 peak (summer construction). Q1 weakest (winter). Best entries Feb-Apr to position before season. Golden cross in Q1 = strong (anticipating season). Q4 signal = weaker.
Weekly shows major trend (multi-year cycles). Daily provides signals. Weekly bullish + daily golden cross = highest conviction. Weekly conflicting = reduce or skip. Infrastructure cycles are long-term.
Higher rates hurt housing (financing costs reduce affordability). But infrastructure less rate-sensitive (government funded). Net effect depends on housing vs infrastructure balance. Monitor Fed.
CRH moved primary listing to NYSE (2023) for better US investor access. US is ~60% of revenue. Improved liquidity, broader investor base, potential valuation re-rating. Strategic move.
Check housing starts and infrastructure spending trends. Both positive = highest conviction. One positive = good. Both negative = avoid momentum longs. Fundamental overlay on technical signals.
Golden_Cross = EMA_20 > EMA_50 AND EMA_20[1] <= EMA_50[1]. Full size when signal AND Construction_Positive AND Infrastructure_Positive. Exit on Death_Cross OR Close < Entry - 2×ATR.
LEAPS (12+ months) capture multi-year infrastructure cycle. Defined risk, time to be right, less gamma. Suit CRH's long cycle nature. Consider 12-18 month calls on golden cross.
Calculate RS vs MLM, VMC. Rising RS = CRH company strength. Falling RS = lagging (investigate). Choose strongest building materials stock. Don't hold multiple (correlated).
Early cycle = best (recovery). Mid cycle = good. Late cycle = caution on new longs. Recession = avoid momentum. Infrastructure spending can offset housing weakness but not recession.
Per-trade 2% risk. Max 5% CRH. Max 10% building materials. Max 25% cyclicals. Provides infrastructure exposure. Balance with defensive positions for overall portfolio.
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