one of those pullbacks? Stellar earnings from the builders seemed to trigger this. Or was there something I missed in those reports? As far as KB goes,around 50% of sales are from the hottest markets in the country right now. I see no problem here? Would like to try and capitalize on any short term correction if possible. Any opinions?
Took profits on calls and loaded up on puts (kbh nov 15s and 16s) earlier this week. KBH chart looks very spiky, stochastics way overbought, too long at or over the upper bollinger. Like the upside on KBH for the long run, but a big pullback is overdue for this entire sector. Romney win leads to investor fears that Bernanke gets canned and MBS buying program gets cancelled. Obama win means fears of higher taxes and flood of costly new regulations. Either way, fiscal cliff problems will hit soon. Markets very vulnerable. Good time to get into cash or play downside.
You forgot a third option - what if they gave a recession but only a few pundits came? That's what's happened for the past three years. A million starts in 2013 at an average price of $254K is a quarter of a trillion dollars added to the construction and finance industry in a single year, and by association - to the economy.