The Echo Bubble in Home Builder Stocks

Housing Stocks Echo Bubble


US Hombuilder Index - $HGX


Toll Brothers Chart

Homebuilder Insider selling in past 3 months =>

Ticker  # Insiders  Total Shares       Total
TOL         10         2,435,356  $152,195,965.25
NVR         6            219,642  $150,588,166.30
KBH         8          1,095,434  $112,854,481.35
NVR         4          4,073,302   $28,519,303.95
LEN         9            407,374   $22,550,826.99
HOV         5            325,500   $15,626,458.09
MDC         5            149,003   $11,509,084.69
RYL         7            140,343    $8,806,072.31
BZH         1             65,731    $8,084,463.34
PHM         3             60,533    $2,732,398.03
MTH         1             15,000    $1,433,594.97
PHM         2             21,000    $1,407,528.99
DHI         2              4,021      $158,219.97
MHO         1              1,000       $52,664.00

Insiders are bailing, interest rates are rising, speculation is rampant, home inventories are piling up and there are big divergences on the charts. Does it make any sense to be long this sector now?

Mish