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#1 denleo

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Posted 31 January 2007 - 12:20 PM

Now that they are up about 3% since I bought them this morning, the momentum is established, and it is becoming less risky to buy more. Buying a lot more home builders here. Still long S&P futures from 1430. I will buy more after the announcement. Denleo

#2 IndexTrader

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Posted 31 January 2007 - 12:23 PM

Are you buying the stocks, or are you doing some type of option trade? IT

#3 denleo

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Posted 31 January 2007 - 12:24 PM

Buying stocks. Denleo

#4 denleo

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Posted 31 January 2007 - 12:41 PM

OK. Done buying. It is a huge position. Espesially KBH. This is a stock in a bad industry with questionable fundamentals and it is being investigated -- it simply can not go down. This is as good as it gets. Denleo

#5 fib_1618

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Posted 31 January 2007 - 01:59 PM

it simply can not go down

Famous last words. :)

In all seriousness, this has been one of the easiest sectors to trade on the long side since last summer based on the divergent technical factors of the price chart. And as long as the mainstream media continues to tell us all of the bad there is (which we already knew was going to happen anyway back in 2005 with the blind froth that lenders were guilty of), this "manufactured" wall of worry will continue to push prices higher in spite of what you read and hear about in the news today....which again has not only been discounted by the marketplace 6 months ago, but has also been woefully taken out of context in order to promote uninformed media biases.

You can either be a fundamentalist and make a little bit of money, or you can be a technician and make a whole lot more....it's up to you.

Fib

PS - One last thing - it was recently stated in a post that the housing market leads the commercial real estate market as far as what one might expect for the industry in general. Having grown up during the great land booms of the late 1970's and the late 1980's, I find this comment to be totally inconsistent to what was actually the case during those times. And because of what I know now than what I did then about how money rotates during economic expansions, I would tend to continue to use what the IYR as a proxy of what we might expect to see in the housing sector moving forward.

Regardless, better to just follow the money and ask questions later.

http://stockcharts.c...08470&r=421.png

http://stockcharts.com/c-sc/sc?s=$HGX&p=D&st=2006-04-01&i=p89251931998&a=62658924&r=660.png

http://stockcharts.c...59064&r=676.png

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