Saturday, October 06, 2007
Strong Week For Home Construction
Home construction lead the way for a very positive week on the markets. 10 stocks in this industry shared double digit gains with Meritage Homes (MTH), Ryland Group (RYL) and KB Home (KBH) leading the sector with gains of 22.17%, 18.01% and 17.32% respectively.

The job report which came out Friday was very positive for the markets. CNBC analysts believe this was a good enough report to fight off recession, but not so good that the feds wouldn't consider lowing interest rates. My personal belief is that the economy is strong and the federal reserve is done cutting interest rate for the time being. This could mean home builders will be pulling back a bit after the next federal open market committee statement on October 31st.

I believe we will see a cutback in the housing / mortgage market next week after showing strong gains for no fundamental reason. Beazer Homes (BZH), WCI Communities (WCI) and Standard Pacific Corp (SPF) are the cheapest stocks in this sector if you're looking for make quick high percentage gains. Computer Hardware was the leading sector last Friday so I'm curious to see if it will continue it's bullish run or if we will see a slight cutback / profit taking.
Written at 8:05 PM by Wayland.
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