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4 Stocks to Sell Into Pressure (And 1 to Buy)

The bears take back Wall Street, loading selling pressure back onto the backs of several stocks.

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Stocks to Sell: PulteGroup (PHM)

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Housing stocks were under pressure on Wednesday in the wake of a disappointing new home sales report: Sales dropped 14.5% sequentially in March to a 384,000 annual rate, well below the 455,000 consensus estimate. Prices are unsustainably high, with the median selling price up 11.2% to a record-high $290,000. On a year-over-year basis, sales are down 13.3% while prices are up 12.6%.

The specter of fewer sales and downward pressure on prices is bringing out the sellers in homebuilding stocks.

Among the vulnerable names is PulteGroup (PHM), which is falling out of a tight monthlong trading range on a notable increase in downside volume. I’ve recommended the May $19 puts to my Edge Letter Pro clients.

PHM reports earnings Thursday morning, which could spur more motion.

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