The homebuilders continue to move higher this morning after recently breaking out from a multi-month symmetrical triangle. What is most impressive to me about this sector is the strong buy volume that has accompanied the breakout. One of the main arguments bears have against the broad market rally to start 2012 has been the lack of volume on the major indices. Well, that is not the case with stocks like Beazer Homes and the XHB, ETF for the homebuilders.
Currently, the homies are a bit too stretched from a quality entry point for me to initiate a swing trade. However, I will be watching the group as a whole very closely in the coming days, looking for a reason to get involved on the long side. When buyers of size show up in force like they have in the homies’ neighborhood, I want to be in on the drive-by action.
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Avon (pictured) wasn’t really into the real estate game, he was more fascinated with pharmaceuticals.
Stringer Bell on the other hand had his sights set on becoming the Donald Trump of B’more until Omar and Brother Mouzone shorted him all the way to the end.
Long live, The Wire!