In 2012, the home-builder stocks have been some of the best market performers. Record low interest rates have certainly helped the industry group. Yesterday, the Federal Reserve Bank reiterated that the fed funds rate will remain at zero percent until at least late 2014. This statement will obviously help the U.S. housing market. It seems that investors would rather own a hard tangible asset than own stocks such as Facebook Inc (NASDAQ:FB). This is also evident as trading volumes remain extremely light in the stock market.
Today, leading home-builder stock Lennar Corp (NYSE:LEN) is trading higher by 0.55 cents to $29.52 a share. The stock was able to find some intra-day support off of the daily chart 50 moving average which was tagged at the open of the market. Short term traders can watch for intra-day resistance around the $29.65, and $29.91 levels. Traders should remember, as long as LEN stock can remain above the important daily chart 50 day moving average the stock remain in an uptrend.
Some other leading home-builder stocks that are trading higher today include Toll Brothers Inc (NYSE:TOL), DR Horton Inc (NYSE:DHI), and KB Home (NYSE:KBH). The entire sector continues to hold up well at this time, however, any close below the important daily chart 50 moving average should raise a red flag. As long as interest rates remain low this sector should be in play again after any correction.