This is another of what Larry Kudlow calls "mustard seeds" of recovery. This index of the stocks of 18 leading home builders is up over 40% from its late November '08 low. That was over three months ago. The housing news continues to be bad, but on the margin, the news is less bad with each passing day. We've most likely passed the inflection point, where the rate of decline starts becoming less and less. Soon or later we could see the news actually become positive. The market is already beginning to figure this out.
