In addition to fundamentals look at technicals, when so many stock from a group make all time highs, take notice. It has been the leadership group of this rally so far.
I'm laughing...when $$$MR. MARKET$$$ bought both CFC and DHI a few months ago, a lot of people on ET stated that it was folly to buy these companies in this environment. I'm still laughing.
Softer housing starts, and group reversing into negative territory. LEN due to announce earnings after the close. Street looks for .83 cents.
The most recent ramp from 364.38 to the new high at 407.85 on March 5th pulled back down to 382.09 last Friday which was a 53% retracement. Today's big move up puts the Homebuilding Index back above the 10-day MA at 389.84 Correction could be over and time to rally back to the old highs at 407.85
I am looking to get into trading this sector more heavily- I know that liquidity is an issue on many of these stocks, but the volatility is there!!! Anyways, I would like to get more information on how the homebuilders and mortgage backed securities respond to changes in the treasury and debt markets. Obviously, these stocks are surging due to the current interest rate environment and the expectation that the Fed will keep the funds rate at 1%, the lowest level in 46 years. But as far as short term fluctuations in these stocks, what are the key numbers that I need to be watching?? If I want to trade homebuilders and MBS, what is the comprehensive list of numbers & reports that I should be looking for?? Thanks in advance for the help, this is an area I have wanted to get into, but admittedly know little about.