Builders On Bounce Watch
- Posted by Frank Zorrilla
- on June 5th, 2013
I have never been a fan of buying the builders once they breakout of a range only because they don’t trade like breakout stocks, to me they are more of buy on pullback type stocks if you like the sector. With that being said some of the builders are pulling back to some key technical levels that bears watching for long entries especially if one likes the sector. With the McClellan oscillator is at -260 (oversold levels) and the fact that the builders were one of the 1st sectors to go down it might be one of 1st ones to go up on an oversold bounce.
Breakout players stay away, those against knife catching don’t bother looking, others that can create a plan around this simple thesis an opportunity has presented itself. $BZH, $DHI, $LEN, $RYL- these stocks are still heavily shorted (definition >10% of float).
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker. More »
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