Home Building Stocks Foretold Housing Slowdown

While housing sales slowed, inventories rose, prices fell and the pundits debated whether the housing bubble had burst, home building stocks moved to the downside. Many home builders peaked in July 2005 almost a full year before housing numbers confirmed a softening in the housing market.

Instead of listening to the talking heads endlessly debate whether the housing boom was coming to an end, many savvy investors locked in their profits well ahead of the actual housing slowdown.

Studying price chart patterns may seem tedious but understanding them can make you money.

Posted August 24, 2006.