Homebuilding Stocks Enjoy Another Big Day

I (RAH) watched the homebuilding stocks all day and it was quite a show. Standard Pacific (SPF) was the big winner closing up 22.08 percent. Its high and low were $4.10 and $2.85. Hovnanian Enterprises (HOV) traded between $8.05 and $10.24, closing up 14.17 percent. Pulte Homes (PHM) closed up 20.49 percent, trading between $12.82 and $16.63 on very heavy volume of almost 23 million shares, almost three times its normal daily volume. By comparison, Centex (CTX) was up only 5.11 percent.

I keep waiting for these stocks to give up much of their gains of the last two weeks, but so far they show no sign of slowing. I checked shortsqeeze.com and short interest remains high for many of the homebuilders.

As I said yesterday, the fundamentals of the housing market remain gloomy as do the business prospects for the homebuilders.

I have no positions in the homebuilding sector.

Related Articles:

Homebuilding Stocks
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Selling Short

Posted January 31, 2008.