Home-builders Raise The Roof, Will The Rally Last? – LEN, TOL, DHI, KBH, PHM, HOV

This morning, the leading home-builder stocks are trading higher at the start of the trading session. Earlier today, leading home-builder Lennar Corp (NYSE:LEN) reported better than expected earnings. This news is one of the catalyst that is helping the home-builder stocks to trade higher on the session. The Case-Schiller data was also released today. This data stated that there were gains in 19 of 20 cities, the 20-city composite index increased by 2.5% in April. This was the largest monthly growth on record.

Toll Brothers Inc (NYSE:TOL) is one of the leading home-builder stocks that is trading sharply higher. Today, TOL stock is trading higher by $1.41 to $33.26 a share. Day traders should watch for intra-day resistance around the $33.73 level. Some other leading home builder stocks that are rallying higher today include DR Horton Inc. (NYSE:DHI), KB Home (NYSE:KBH), PulteGroup, Inc. (NYSE:PHM), and Hovnanian Enterprises Inc. (NYSE:HOV). Please understand, the home-builder stocks are very sensitive to higher interest rates, so the yield on the 10-year U.S. Treasury Note should be followed very closely by traders and investors. Higher bond yields are a negative for the home-builder stocks and could stall out any near term bounce in this important sector.

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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