While homebuilders had a monstrous run since I first wrote about them at the first of the year, XHB has hit a wall and stopped dead.
Even with the overall market in a melt up over the past month, Homebuilders were one of the few sectors that have chalked up a loss over the past week. This raised my curiosity of what had gone wrong. I immediately discovered that the homebuilders are apparently, asleep on the job.
SPDR S&P Homebuilders (NYSEARCA:XHB) had its holding rebalanced on January 31st.
As the result of the rebalancing, mattress manufactures are now two of the top holdings comprising almost 9% of this ETF. Of course what good are mattresses without decorator pillows from Pier 1?