Home-builders Are Lagging Today’s Rally

By Feb 8, 2013, 12:12 PM Author's Blog  

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.

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