This afternoon, the leading home-builder stocks are all trading lower on the charts. This leading industry group has been selling off since May 22, 2013. Many traders can make the case that the recent surge in yields on the 10 and 20-year U.S. Treasury note is the catalyst for the decline in the home-builder stocks. Higher bond yields will likely curtain home buying by individuals and private equity firms.
Lennar Corp (NYSE:LEN) is one of the leading home-builder stocks that are coming under selling pressure today. LEN stock is trading lower by $1.35 to $37.88 a share. This stock is nearing oversold levels on the daily chart, but until the stock reaches the $35.00 level it could be vulnerable to further declines. Day traders can watch for intra-day support around the $37.00 level.
Some other leading home-builders that are also coming under selling pressure today include Toll Brothers Inc. (NYSE:TOL), KB Home (NYSE:KBH), DR Horton Inc. (NYSE:DHI), and PulteGroup, Inc. (NYSE:PHM). This group of stock trades very closely together. Traders can track the entire industry group by following the iShares Dow Jones US Home Construction (NYSE:ITB).