Home-builder Stocks Could Be Talking to Us – LEN, TOL, DHI, KBH, PHM

This morning, the leading home-builder stocks are declining lower at the start of the trading day. Many traders are now viewing the home-builder stocks as a sign that the Federal Reserve is going to being tapering it’s QE-3 program. Currently, the Federal Reserve is buying $85 billion a month worth of mortgage backed securities and U.S. Treasuries. Should the central bank decide to cut back on it’s aggressive mortgage backed securities purchasing it could hurt the home-builder sector.

Lennar Corp (NYSE:LEN) is one of the leading home-builder stocks in the industry group. Today, LEN stock is declining lower by $1.37 to $37.23 a share. Day traders can watch for intra-day support around the $37.00, and $36.42 levels. The daily chart has support around the $35.00 area should it fail to hold the recent low around $36.40.

Some of the leading home-builder stocks that are trading lower at the start of the trading day include Toll Brothers Inc. (NYSE:TOL), DR Horton Inc. (NYSE:DHI), KB Home (NYSE:KBH), and PulteGroup, Inc. (NYSE:PHM). Traders that want to track the entire home-builder sector can follow the iShares Dow Jones US Home Construction (NYSE:ITB).

About Nicholas Santiago 575 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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