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Housing Stocks Look Ready To Dump - End of the Road?



September 24, 2012 – Comments (1) | RELATED TICKERS: LEN , KBH , DHI

One thing I've seen pouring through the insane amount of daily charts today is the sudden change in behavior in home-builders. The four charts below represent this weakness quite nicely. In fact each one, Lennar (LEN), KB Homes (KBH), D.R. Horton (DHI), and Pulte Homes (PHM) all show bearish price patterns at their peaks that indicate to me, at the very least, a pullback is in order. 

Right now is probably the best time to short them if you are worried about keeping the risk tight on the trade, however, if we get downside follow through tomorrow, it would probably represent a better time 'technically' to get short on the home builders. 

Here's the chart breakdowns on the home builders

1 Comments – Post Your Own

#1) On September 24, 2012 at 7:03 PM, Melaschasm (< 20) wrote:

While the home builders are probably due for a correction, I recommend caution when it comes to shorting them.

IMO homebuilders are at the beginning of a long bull market.  While there will be many short term corrections, such are difficult to predict.  When you are wrong, you could lose significant money, since their generally direction should be upwards at a faster rate than the market as a whole.

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