January 07, 2004

Roof Forming on Homebuilding Stocks

Having worked on this housing report...I've been looking at a lot of charts. The one below is the most interesting. The yellow line is the Amex-listed Willshire REIT index. REITs have been on a tear over the last two years. And they've generally outperformed homebuilders. But as you can see from the blue line (HGX), home-building stocks began outperforming REITS in August of last year. Now...however...HGX is trading smack on the 50-day moving average. And technicians will recognize a tidy double top pattern on the chart.


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