Homebuilders Gain Traction
The strength in the homebuilding stocks is interesting from a technical perspective. The group has little, if any fundamental reason for rallying higher. A continuing credit contraction, consumer deleveraging and a massive shadow inventory of foreclosed homes should conspire to keep housing prices under pressure.
So why is the group finding bullish traction and rallying? The answer is simple for a technician, but may be a bit more difficult for fundamental analysts to get their heads around. All of the bad news was factored in a long time ago. The worst case scenario has already been realized and the bulls are looking to the future....543 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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