Homebuilders May Finally Be Coming Off The Bottom

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Includes: BZH, PHM, XHB
by: Jeff Pierce

I’m not a big fan of bottom-picking, but the homebuilders sector (see the SPDR Homebuilders ETF, XHB) caught my eye while running some bullish scans tonight.

Beazer Homes (NYSE:BZH) and PulteGroup (NYSE:PHM) look to be establishing a bottom technically, and with modest accumulation coming in from a volume standpoint, you may want to start nibbling on the long side if your time frame is much longer than mine.

While I remain bearish on the general markets, this sector will be one to watch from here on out, to see how it handles any corrections.

Disclosure: No positions.