What PowerRatings is Saying About PHM and Other Homebuilders
One of the weakest looking sectors from our PowerRatings
Heat Maps
is Materials and Construction. Many of the stocks have been making higher
highs for the past 5 sessions and are showing up in our
TradingMarkets
Stock Indicators. This tells us that the edge in being long these
stocks is dwindling.Â
Also, there are a
high percentage of stocks with PowerRatings of 3 or lower. Stocks with low
PowerRatings have been historically proven to underperform the S&P 500 Index
over the next 5 sessions. These stocks should be put on a list of stocks
to avoid. More aggressive traders may want to keep an eye on these stocks
for a potential short entry.
One of the great features of Heat Maps is that we can zoom in
on a particular sector for a deeper look. Here we have a close up of the
Materials and Construction sector stocks with PowerRatings:
Here are a few daily charts of the some of the Materials and
Construction stocks
listed above:
Pulte Homes
(
PHM |
Quote |
Chart |
News |
PowerRating)
As of 12:45 PM EST, S&P 500 Index member PHM has fallen 2% from the close on 4/20/07.
Orleans Homebuilders
(
OHB |
Quote |
Chart |
News |
PowerRating)
OHB is currently down 3.9%.
Technical Olympic
(
TOA |
Quote |
Chart |
News |
PowerRating)
TOA is down 4% from last Friday’s close.
If you would like to attend a free class which covers this
research and strategy further, please
click here
for the calendar of the upcoming online classes. Topics covered include our
latest research on
entries and exits, and how to use PowerRatings with our new
Preferred Stock List.
For a free PowerRatings trial,
click here. If
you have any questions about PowerRatings or the new Stock Indicators please
feel free to email us or call 213-955-5858 ext 1.
Darren Wong
Associate Editor
Reminder: We are in no way recommending the purchase or short sale of
these stocks. This article is intended for education purposes only. Trading
should be based on your own understanding of market conditions, price patterns
and risk; our information is designed to contribute to your understanding.