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Home-builder Stocks Could Be Talking Again

Jul. 22, 2013 11:14 AM ETITB
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Seeking Alpha Analyst Since 2009

InTheMoneyStocks.com was established in 2007 with the goal of helping average investors compete and beat the Wall Street elite. Founders, Gareth Soloway and Nicholas Santiago spent years (prior to launch) developing the PPT Methodology, a simple way to analyze charts (stocks, commodities, forex, crypto… ect), finding the next directional move with a proven 82% success rate (94% for day trading). With tens-of-thousands of members since their launch in 2007, and many hedge fund clients, InTheMoneyStocks.com is now a household name with investors and traders all over the world. InTheMoneyStocks is one of the oldest proprietary trade alert firms on the internet, which shows the long lasting positive and profitable impact on the lives of our members. We pride ourselves on being transparent, open and honest, not only giving our live trades to our members, but teaching them how to analyze charts and learn how to find the next market cycle via the PPT Methodology.

This morning, many of the leading home-builder stocks are coming under some early morning selling pressure. Earlier today, the National Association of Realtors said home sales fell 1.2 percent to an annual rate of 5.08 million units. This news seems to be having a slightly negative effect on the leading home-builder stocks such as Toll Brothers Inc (NYSE:TOL), M/I Homes Inc (NYSE:MHO), Lennar Corporation (NYSE:LEN), and the Ryland Group, Inc. (NYSE:RYL).

Traders that want to track the home-builder sector can follow the iShares Dow Jones US Home Construction ETF (NYSEARCA:ITB). Today, ITB is trading lower by 0.36 cents to $22.87 a share. Day traders can watch for intra-day support around the $22.50 level.

Traders should follow the home-builder sector very closely as it is such an important part of the U.S. economy. A fair case can be made that the home-builder stocks are a leading indicator for the economic recovery and the stock market. Currently, the leading home-builder stocks have been in a trading range since the start of the year. The key daily chart support level for the ITB is around the $20.00 level. Any significant break below that important support area could spell serious problems for the home-builder sector and the U.S. economy.

Nicholas Santiago

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