Another Strong Day in Housing


Last week we highlighted a rare green shoot in housing. Today it might have sprouted a little higher.

Homebuilders, believe it or not, are the best-performing industry among dozens available on TradeStation’s ever-useful RadarScreen comparison tool. Click here for a free tutorial on tracking Dow Jones indices on the platform.

The gain in housing follows signs of a thaw in a housing market frozen by low inventories. It also came after the industry’s monthly sentiment gauge from NAHB remained near its highest level in a decade.

“Builders are optimistic about housing market conditions, basing their confidence on continued solid demand for single-family homes,” the report declared.

There will be more news tomorrow when the Commerce Department announces housing starts and building permits. Here are some other events to watch:

  • July 23: Existing home sales
  • July 25: New home sales
  • July 26: Earnings from builders D.R. Horton (DHI) and PulteGroup (PHM)

Today’s 2.6 percent gain in the DJ US Home Construction Index ($DJUSHB) was the biggest since June 8. The surge follows more than a week of consolidation below its 50-day moving average.

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David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.