Back to top

Real Time Insight

The DJ Home Builders ETF (ITB - ETF report) broke out of a downtrend yesterday (see the chart).  The breakout has come on strong volume.  Furthermore, the market was able to hold the August 15 low when volume surged and the ETF closed higher after making a new low on strong volume.  The technical picture seems to leans bullish.


Banks see slower mortgage activity:

The breakout in the housing sector comes at a time when banks are laying off workers in their mortgage units.  At a conference yesterday JP Morgan (JPM) said that U.S. mortgage originations would be down 30% to 40% in H2 2013 compared to H2 2013. Wells Fargo (WFC) also expected originations to decline.

Prices may restrict home buying:

Homebuilder Hovnanian (HOV) said it has been aggressively raising prices, but sales had slowed with strong traffic.  It sees pent up demand and demographics as favorable big picture factors.

Yields remain high:

The 10 year treasury yield is having trouble falling due to the heavy load of supply.  3, 10, and 30 year auctions occur this week, and Verizon debt deal needs final pricing.   The Fed is likely to announce tapering later this month at the FOMC meeting.

RTI Question: Do you think the housing sector has a chance for a meaningful rebound from the May low or is the recent bounce a fade (are you fading or believing the chart)?

Let me know your thoughts below: 

Just Released: 5 Stocks to Double

Today, you are invited to download a free Special Report from Zacks Investment Research. It reveals five moves that could gain +100% and more in the next 12 months:

One is a "boring" business delivering blistering growth. Another is a red-hot oil and gas producer set to surge on a drilling breakthrough. Still another, an online payment provider, ignited a 53% sales explosion during the past year.

Close This Panel X

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%