Builder Stocks Rise
Here’s another article from Kiplinger’s,Goodbye Condo Mania saying that the South Western Florida Condo market is done.
Just as I thought, all this bad news about builders had the opposite affect. The stock i’m short on [via fixed-risk put positions] was up today even after everyone and their mother is claiming that the florida condo market is dead. WCI was up today for no apparent reason. Probaby a short squeeze since its a heavily shorted short.
Or maybe people are thinking that the single-digit PE levels make home building stocks a good buy. Thats just the market lulling them into a false sense of security. I’m going to maintain my short positions. I have 5 months on 1 contract and 17 on the other. Home sales slow down in the fall and winter so I’m pretty sure the stock will drop on pessimistic guidance. Plus, technically, there doesn’t seem to be any resistance down to $10, which is a good sign.
Even Toll Brothers [TOL] was up today!! Just 2 days ago the CEO said
1. The market is the worst its been in 40 years for home builders
2. He doesn’t know when its going to start to get better.
And the stock is up!
Please do not follow any of my recommendations. My stock investing record is extremely poor. Plus I haven’t even been investing nor following the markets for the past 3 years. This is just for information so you guys can look back in 2 years and agree on how bad my stock selection was!
If you found this post helpful, consider donating to my coffee fund!![[del.icio.us]](http://images.del.icio.us/static/img/delicious.small.gif){kind=small}
- 10 Reasons Why Gold Should Break $1000 This Year Today's guest post comes from Bruce, CEO of Superior Gold and includes a free silver coin! For many years I was a successful real estate investor. However, I realized that the market was getting very speculative and decided to get out while the going was good. In 2003, I sold......
-
Gold Jumps: Has It Become Correlated To The Stock Market? I've been an avid collector of gold and silver coins and have been following the prices for a years. Gold is supposed to have a negative correlation with the stock market. This year has proved otherwise. Of course, as we've seen repeatedly in the past, all asset classes correlate to...... - Housing Continues To Get Worse Housing continues to get worse. According to a recent article in BusinessWeek: A strong job market, the thriving casino and convention industry, and the highest population growth in the country made Vegas a boomtown for builders. Sin City represented one of the top five markets.Today, new homes are empty and......
Related Websites
- Younger Investors Becoming More Risk Averse than Older Investors Some interesting, perhaps troubling, results from the Merrill Lynch Quarterly Affluent Insights Survey this morning. Younger investors are more risk averse than older investors. Those in their 20s and 30s are more risk averse than the 40s and 50s demographic because they been burned twice in the last decade. Older......
- Capitalism is Good - Leave It Alone On Tuesday, Federal Reserve Chairman Ben Bernanke said "We must have a strategy that regulates the financial system as a whole, in a holistic way, not just its individual components," during his speech to a committee on foreign relations. His call was for a complete overhaul of the regulatory systems......
- Why I'm Rooting Against The Stock Market First, let me clarify. I'm not rooting for it to drop like it did last year, I'm just hoping it doesn't increase like it did in the first half of this year. At least not yet. Entering the workforce, you may think that this would be the best time for......
[All content is copyright of Living Off Dividends & Passive Income]
Leave a Reply