Thursday, October 12, 2006

Housing on a tear!

Well, housing is back with a vengence. I'll be honest with you, I have no idea why housing is coming back so strong. There were a bunch of companies that received analyst upgrades a couple days back, but that still doesn't justify the bullish moves despite the housing stats.

Have you ever played the game "Lemmings"? Essentially, it is one little lemming, following another, following another, and so on. (Don't worry, I'm getting to my relation between lemmings and housing sector). Well, A few weeks back, Toll Brothers (TOL), a major player in the housing sector (lots of news comes from this company), started its ascent. Then, a couple days back, Meritage Homes (MTH) broke thru a sideways channel (look at it now, unreal!). AND NOW, KB Homes (KBH) looks like its at the upper resistance of its sideway channel.

Now, two of the three have already created bullish moves, and KBH is poised to do the same, WILL IT? We'll have to watch and see!

If this housing move proves to be a true move to the upside, there is plenty of room for it to move.


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