June 27, 2013 at 1:04 pm

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John Jagerson and Wade Hansen of SlingShot Trader had this to say after KBH posted losses that weren’t as bad as expected:

“KBH does appear to have established itself above $20 — the level that had served as support for the stock since March but had recently been serving as resistance — and is trading at its pre-market highs.”

Do you think we’ll see the rest of the homebuilders deliver “better than expected bad news”?

“Everyone must choose two pains: The pain of discipline, or the pain of regret.” Jim Rohn

June 27, 2013 at 1:16 pm

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Perhaps! The SPDR S&P Homebuilders ETF, XHB, seems to be doing pretty well climbing out of its recent hole — so the market seems to think so, at least :)

June 27, 2013 at 10:29 pm

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Homebuilders seem to be doing okay, if not very good.

July 1, 2013 at 12:02 pm

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A key part could be, as Jon Markman notes, “Orders missed, though EPS beat on the back of strong pricing-driven gross margin expansion. The company also said that sales representatives have noted that buyer traffic is holding up in June, while higher mortgage rates have heightened buyer urgency.”

“Everyone must choose two pains: The pain of discipline, or the pain of regret.” Jim Rohn

July 2, 2013 at 12:54 am

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Most likely the higher end homes will be selling most. Best to stick those stocks.

July 2, 2013 at 10:27 am

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Ramiroruiz, if we do see high-end-home stocks do well, I wonder if it means a move away from home improvement stocks like Home Depot (HD) or Lowe’s (LOW) or even some of the material suppliers like Masco (MAS)? In the U.S. we’re deep into the summer home improvement season and I, personally, have dropped a small fortune at HD stores, so that may override any pullback they see if investors buoy up high-end-home stocks.

“Everyone must choose two pains: The pain of discipline, or the pain of regret.” Jim Rohn

July 11, 2013 at 11:18 am

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Joined: Jan. 23, 2013 Posts: 17

You can even look outside of home-builder stocks to get an idea of how the construction landscape is looking. For instance, Jon Markman notes that “pickup truck sales tend to be a good economic indicator all by themselves because they show strength or weakness in small U.S. business growth and construction. It was great to see Ford (F) report strong F-150 sales last week; they were up 20% in June to 68,000, the largest total since 2005! Moreover, the year-to-date total is now back to 2006 levels. In short, the economy slowly but surely appears to be normalizing back to pre-crisis levels.”

July 15, 2013 at 12:16 am

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<P>John Jagerson and Wade Hansen of SlingShot Trader had this to say after KBH posted losses that weren’t as bad as expected:</P>
<P>“KBH does appear to have established itself above $20 — the level that had served as support for the stock since March but had recently been serving as resistance — and is trading at its pre-market highs.”</P>
<P>Do you think we’ll see the rest of the homebuilders deliver “better than expected bad news”?</P>

HOMEBUILDERS – WILL RATHER EXSPECT MEDIUM SUPPORT FOR TIMEING FOR THE FUTURE TRADE EXSPECTATION! AFTER MEDIUM SUPPORT HAS BEEN ESTABLISHED THE SUPPORT WILL REACT 1/3 THE DISTANCE FROM THE LAST PRICE AND RESPOND TO A NEW RETURN ON INVESTMENT!

REGG

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