Home building stocks ~falling~
The home building stocks have been under distribution, and today the charts really looked like major top-outs. This action in the home-builders has serious consequences for the US economy, and if it continues its going to turn the American consumers gloomy. You don't believe me regarding the housing picture? Check out the chart of the biggest builder in the nation. Ironic, now that all talk of housing seems to have halted, the stocks are finally collapsing. Next phase -- a break in housing prices.
posted by Dr. Jeff Lazarus MD at 4:49 PM
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Toll Brothers Inc., the largest US builder of luxury houses, said fiscal first-quarter orders plunged 29 percent, the first drop in three years -- Toll also cut its sales forecast for the year as demand for new homes weakened.
Doug's Comment: As I've been warning in recent reports, the home-building stocks have been topping-out on the charts. In fact on a site last week I reported that the deterioration in the home-building stocks was now so flagrant that it's probable that the housing boom is about over. I believe housing prices have already stalled out, and before this year is out I expect house prices to turn down.
If housing is indeed topping out, it will impact on consumer buying, and this will probably spread negatively throughout the US economy.
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