Banks, Homebuilders: Update on Two Sectors

Here's a quick look at two sectors that I had earlier featured when they failed to confirm the June highs in the large cap stock indexes. Banks ($BKX, top chart) and homebuilder shares (XHB, bottom chart) are now retracing much of their rallies from March. As I stressed in the earlier post, it is difficult to imagine sustaining economic strength without the participation of these sectors.

Comments

[jeandit75:]

and hard to imagine that these two can improve any time soon

Jul 08 02:18 PM

[stephen holben:]

If people don't function, builders don't sell, bankers can't lend, media reports bad news, people get scared,don't function,builders don't sell,bankers can't lend, media reports more bad news, people get scared, don't function,builder don't sell,bankers can't lend, media reports even more bad news, people get scared,don't function, builder's don't sell...you get the point. I have felt since the big media push to get the Big O elected that this recession is a lot more media driven than caused by anything that couldn't be fixed by more "can do", "damn the torpedoes" positivity from the media dogs. I think people are getting tired of waiting for the economic "Boogey Man", and are getting just plain mean because they do want to get on with thier lives, and aren't seeing any real reason for why not except this"Boogey Man" that nobody else can see except the media and the ever present supply of doomsday "experts". I see us behaving a lot like the apes in "2001 A Space Odessey"; hiding under a rock from the tiger without knowing it is in their power to chase off the tiger and get what they want from life.

Jul 08 04:40 PM