Sold all my home builders after KBH report Wednesday morning
Including all my beloved Hov and SPF. Even shorted KBH, PHM, DHI, and BZH. I still firmly believe the long term the home builders are the way to go, but short term all catalysts to move the home builder higher are gone for the next several weeks. With a catalyst, the home builders have many more red days than green. Plus the market is badly overbought and I suspect once the S&P hits the high, a correction could happen. I will remove my puts in a week or two and buy back in at a much lower price than I sold for.