The point of today’s column was to show that despite some of the news that’s out there, the market still has not blessed the housing sector with recovery. Don’t get me wrong, I do think the worst is finally over but as far as giving it my blessing, not that I deserve to bless anything, and by extension my blessing on the economy, well, you know the rest.
Here’s a version of the Toll Brothers chart that I did not publish today:
Yes, that is a short-term breakout but check out on-balance volume. Nobody is accumulating this dog. Meritage was better but not enough to get me excited about it.
The bottom line is that an investment in homebuilders should pay off in a year or two but I am looking for more of a pre-construction price.
