For a few years now, housing has been hard to figure out.
It kind of makes sense that houses would have some interest during the pandemic, but holy mackerel, housing prices went ballistic.
Typical houses in the suburbs became tulips during the Tulip Bubble.
It was crazy.
And then mortgage rates started to rise. Surely, that would kill the housing market.
Time to get Short!
Nope.
While the housing sector did fall during the Bear Market like everything else, there’s been a massive resurgence.
Wait, did mortgages drop?
Not really.
Then why are they soaring?
Because inflation is slightly getting better?
It doesn’t really make sense. But homebuilders are flying.
Take PHM (Pulte Group), for example:
As you can see, PHM has been soaring in 2023. Now it’s poised to make a new high (it’s already bullishly above the long-term moving average).
A break above $60.90 could lead to a nice run.
Housing is hot again. It’s one of the best-moving sectors in the world.
And PHM could continue that trend.
Happy trading,
Scott
