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Markets Tank Yet Home-Builder Stocks Remain Positive

Published 11/08/2012, 12:05 AM
Updated 07/09/2023, 06:31 AM
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All of the major stock indexes got sold off Wednesday morning after the Obama re-election victory. The major stock indexes declined sharply lower on heavy volume. This tells us that this is institutional selling. Normally, after a Democratic victory in the elections the stock markets will usually decline and trade lower.

Most leading stock sectors are being sold off. Leading industry groups such as the financial, energy, technology, and retail sectors are all seeing broad based selling. Surprisingly, the one industry group that is trading flat to positive is the home-builder stock sector. Yesterday, leading home-builder stocks such as Toll Brothers Inc (TOL), KB Home (KBH), D.R. Horton Inc (DHI) and Hovnanian Enterprises Inc (HOV) are trading positive on the session. This sector continues to show relative strength in the near-term. Should the major stock indexes somehow manage to bounce later in the session the home-builder sector could lead the markets higher.
KBH

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