Look at chart after chart. When Bernanke lowers the interest rates, you will see a MAJOR RECOVERY in these stocks. If you don't think he's aware of the housing stocks being pummelled, think AGAIN. He is, as it was reported. And, according to my sources, it will happen sooner rather than later.
Still, I know it's worrisome. If you are still in these stocks, what is the point in selling down here? They are ALL very near their LOWEST support lines. Let CNBC beat them down some more. They are like that, but you can be sure hedge funds will be buying DOWN here....very soon! The negativity is as thick as the smoke of 9/11.
The volumes are becoming LIGHTER and LIGHTER, and to me, that is an indication of BOTTOMING.
Take a break from the computer screen and take a little look out at the real world for a second.
Right now mortgage lending is being tightened. Countrywide, the largest lender in the country has said it will no longer finance zero down loans. Zero down loans were used by almost half of first time home buyers last year. A quater percent change in interest rates (which won't happen anyway) isn't going to suddenly give those people a 10% downpayment. This stock hit $26 last summer, conditions are a LOT worse this year, earnings are WAY below what was being predicted last year and with the subprime collapse investors are more nervous than last year. If that isn't a blueprint for a new 52 week low I don't know what is.
I probably wouldn't go short at this point (I bought Jan 08 puts over a year ago) but I won't be selling my options before this thing hits $23.