Thursday, August 15, 2013

Homebuilders - Pause That Refreshes or Trend Change?

Curious little item: Associated Press notes that "Confidence among U.S. homebuilders is at its highest level in nearly eight years, fueled by optimism that demand for new homes will drive sales growth into next year." Sounds good. Then why has the homebuilders sector fund, XHB, been faltering of late?

Too early to say whether it's either the pause that refreshes or the beginning of a trend change, but it is always worth noting when price action does not match the story - especially when the price action appears to be in the process of building a top or bottom.

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