Thursday, April 03, 2008

Home builder stocks v2

OK - my homebuilder stock picks a few months ago was the single worst timing call ever for me. I toyed with adding to my position - which I should have done, but chickened out - I thought (and am still concerned) that one or more of my holdings could have gone bankrupt....

After the recent run-up, I'm still below my entry, but no longer gasping for oxygen. At least one is close to my purchase price -but it was here not too long ago and retreated. The better technical indicator is that two of my three homebuilders (HOV, CTX, KBH) are above both their 50 day and 200 day moving average, and weren't the last time they got close to my entries.

Given the snapback, I'll be happy with some sideways action for a while, just as long as we don't slip back

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