Republican Convention will take the market up the rest of the week and I believe pending home sales come out tomorrow at 10 am and will give the builders a boost. Also GDP is coming out at 8:30 which could go anyway, but based on earnings, I think we will meet estimates.
Today was a bad day for the market as a whole based on the media coverage of Isaac. Tomorrow we will wake up and find it was a non event and the media will have to run clips of Katrina again.
Housing is in the very early stages of a recovery and it will be very difficult to pick out short term tops as we go. And KBH will not see a positive quarter for some time to come.