Wednesday, July 20, 2005

Homebuilders Continue Surge

The homebuilders continue to trade higher. I recommended Lennar (LEN) on 6/16/05. If you bought on 6/16 you would have a nice 8.0% gain. I still like Lennar up until $70-75. Homebuilder DR Horton (DHI) reports tomorrow, which should prove as another catalyst for the sector. My only concern for these stocks is they have been going up in light volume, which can be a bearish indicator of a "top." With the volume aside, these stocks are driven by earnings and backlog orders. And Lennar has both, as do most of the other homebuilders.


Post a Comment

<< Home