Tuesday, March 13, 2007

Home Building Stocks Break Below Another Support Level



Home building stocks continue their slide with the index losing over 4% today and closing below the November lows. The next likely target for this group would be the lows from July 2006. Keep in mind, July is where the big rally in stocks began last year, yet the home building stocks are in striking distance of testing those lows.

3 comments:

Sandro said...

Kevin, do you have game plan after they hit July lows?

Is it possible that the bounce up from this magic line, wait until shorts cover, and then go below?

I hold a lot of puts on this stuff, I'm scratching my head what to do.

Kevin said...

we should all have your problem..:-)

If the home builders got down to that level, I would probably cover half of my position and leave the rest with a tight trailing stop to lock in profits.

Sandro said...

Thanks, that will be my plan A :-)

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