Yesterday (Wed.) DOW was down 226 points and RYL went down only 93 points. Today, currently, DOW is down another 49 points, yet RYL has total recovered yesterdays loss. Conclusion: RYL wants to run up yet more, and homebuilder stocks have more strength than the overall market.
You are concluding based on 2 days' actions. This is simply going up based on a faulty assumption that Obama is going to reward the HBs. Reality will dawn soon and this stock will go back to its place which is atleast less than 17. Honestly it shud be zero but then no stock falls dramatically unless BK talks start happening.
The mm's ran this piece of crap up almost a buck this morning in a few minutes on hardly any volume and held it there to get the shorts to cover and some fool hearty longs to buy. Ryland and the rest of the market has been going up and may continue for a while in this bear market rally, but you'd have to be a fool to try to make money on the long side, no guarantees. If your short it may go up temporarily but it's definitely coming down long term, into the single digits eventually.
The home builders will be the last in line to benefit from the stimulus. The emphasis will be on helping distress homeowners modify their mortgages and attracting buyers of existing homes with favorable terms. There's already plenty of inventory in the market. Pumping more units into the market would dilute value; resulting in more foreclosures.