Many of the homebuilder stocks are looking toppy to me. Could this finally be the end of their long boom? Looks like it to me. In addition to the toppy price patterns, On Balance Volume looks ominous on many of these stocks. Check out BZH, SPF, RYL (I might have to short this one… looks juicy), PHM, and MDC.
TOL has a similar pattern. Scary how similar they all look. Only thing that would worry me from a chartist persective is that this current top was above the previous peak in every case
Good point John. There’s potential for last week’s high to be a lower-high. Aggressive traders could jump in short now with last week’s high as a stop-loss point.
Those homebuilders have been tempting for a loooong time. I would think you’d have to be a quick in-and-out aggressive person on these. You are really fighting the Fed on these bad boys.