The housing sector, which seems to have been saddled with the responsibility for the entire economic recovery, may be about to let it down. #-ad_banner-#Last week, when homebuilding supplier Lumber Liquidators (NYSE: LL) collapsed after projecting second-quarter earnings would be well below analyst estimates, shares of homebuilders stumbled too. It did not look like much, but it signaled a change in fortunes for the group as a whole. One of the larger and better-performing stocks in the group, D.R. Horton (NYSE: DHI), now looks like a sell. Shares hit a price ceiling, and unlike many of its peers,… Read More
The housing sector, which seems to have been saddled with the responsibility for the entire economic recovery, may be about to let it down. #-ad_banner-#Last week, when homebuilding supplier Lumber Liquidators (NYSE: LL) collapsed after projecting second-quarter earnings would be well below analyst estimates, shares of homebuilders stumbled too. It did not look like much, but it signaled a change in fortunes for the group as a whole. One of the larger and better-performing stocks in the group, D.R. Horton (NYSE: DHI), now looks like a sell. Shares hit a price ceiling, and unlike many of its peers, DHI has room to fall before we have to worry about a long-term breakdown. DHI sold off between February and March, along with the rest of the sector, but managed to stabilize shortly thereafter. In May, it began its march back to previous highs and got there on July 1. That day, it closed at a new high for the year in what seemed to be a technical breakout. Unfortunately, that was not the case. The next day it scored an outside-day reversal to the downside by notching a new intraday high but closing… Read More