InTheMoneyStocks'  Instablog

Send Message
  • Is The Roof Falling In On The Housing Stocks? 0 comments
    Apr 15, 2013 11:17 AM | about stocks: TOL

    This morning, many of the leading home-builder stocks are selling off at the start of the trading day. Earlier, the NAHB's monthly confidence index signaled a decline in home-builder confidence. This was the third consecutive decline in this number. The home-builder stocks were one of the top industry groups in 2012. So far this important and leading stocks sector has been range bound on the charts in 2013.

    One of the leading home-builder stocks that traders should follow is Toll Brothers Inc (NYSE:TOL). This company builds high end homes for affluent customers. Today, TOL stock is trading lower by 0.98 cents to $32.06 a share. Short term traders should watch for intra-day support around the $31.70, and $31.00 levels. The daily chart for TOL will have near term support around the $30.00 area.

    Some of the leading home-builder stocks that are falling lower today include Lennar Corp (NYSE:LEN, KB Home (NYSE:KBH), DR Horton Inc (NYSE:DHI), and Hovnanian Enterprises Inc (NYSE:HOV). Traders and investors must remember that the Federal Reserve has been buying $45 billion a month worth of mortgage backed securities to help prop up the housing market. Many private equity firms have been buying single family homes from the banks over the past couple of years. These private equity firms turn these properties into rentals to satisfy the hot rental market. All of these actions could have been distorting the housing market condition. If these actions by the bankers start to fail it could spell trouble ahead for the economy which is dependent on the recent housing recovery.

    Nicholas Santiago

    (click to enlarge)

    Stocks: TOL
Back To InTheMoneyStocks' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • And he just closed out another one, $DUST for +7.55% in the Research Center...
    Jul 20, 2016
  • Gareth sold his $JDST in the Research Center here: Profit earned = +12.5%. Congrats members!
    Jul 20, 2016
  • $IWM negative already on the day. Small cap warning signal?
    Jul 20, 2016
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.