Home-builders Are Lagging Today’s Rally

This morning, the leading home-builder stocks are struggling to catch a bid higher despite another stock market rally. This leading stock sector has been one of the biggest winning industry groups since October 4, 2011. Traders should always watch when leading industry groups fail to participate with the major stock indexes, it could be a sign that market weakness could be approaching very soon.

One of the leading home-builder stocks in the market that traders should follow is Lennar Corp (NYSE:LEN). This leading home-builder stock is trading lower by 0.38 cents to $39.75 a share. Short term traders should watch for intra-day support around the $39.00, and $38.75 levels. This important stock is now trading directly on its daily chart 50-day moving average which is a very important level for many traders and investors.

Some other leading home-builder stocks that are trading lower today include D.R. Horton, Inc (NYSE:DHI), The Ryland Group Inc (NYSE:RYL), M/I Homes Inc (NYSE:MHO), and Beazer Homes USA Inc (NYSE:BZH) just to name a few names in the sector. For the most part, these stocks are still holding up on the daily charts, so this could simply be a minor pullback and nothing more. If these stocks start to decline further it could be signaling some real trouble for the sector and for the major stock indexes.

About Nicholas Santiago 576 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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