Last week we highlighted a rare green shoot in housing. Today it might have sprouted a little higher.
Homebuilders, believe it or not, are the best-performing industry among dozens available on TradeStation’s ever-useful RadarScreen comparison tool. Click here for a free tutorial on tracking Dow Jones indices on the platform.
The gain in housing follows signs of a thaw in a housing market frozen by low inventories. It also came after the industry’s monthly sentiment gauge from NAHB remained near its highest level in a decade.
“Builders are optimistic about housing market conditions, basing their confidence on continued solid demand for single-family homes,” the report declared.
There will be more news tomorrow when the Commerce Department announces housing starts and building permits. Here are some other events to watch:
- July 23: Existing home sales
- July 25: New home sales
- July 26: Earnings from builders D.R. Horton (DHI) and PulteGroup (PHM)
Today’s 2.6 percent gain in the DJ US Home Construction Index ($DJUSHB) was the biggest since June 8. The surge follows more than a week of consolidation below its 50-day moving average.