Homebuilder Stocks Going Parabolic

Homebuilder Stocks Going Parabolic

I worry about the sustainability of the housing market given the wide gap between single-family starts in red and the Housing Market Index in blue.. Horton (DHI) is above its annual pivot at $58.05 so the upside should stall with a decline back to this level as a magnet.. KB Home (KBH) is above its annual and semiannual pivots at $37.36 and $38.24 so the upside should stall with a decline back to these levels as magnets.. Annual levels are in play all year long.. To capture share price volatility investors should buy on weakness to a value level and reduce holdings on strength to a risky level.. A pivot is a value level or risky level that was violated within its time horizon..