Home Stocks Continue to Fly

I wish I had followed my own advice Saturday and bought this washed out sector for the "trade". Bah.

Following on yesterday's post this sector continues to run big. All major names in the sector up 5-9%, as shorts run to cover (literally and figuratively). A few more days like this and its going to be a nice short. Long term down trends have a few instances of snap back rallies such as this. With the housing market putrid for another 2-3 years, this is not "the bottom" but an interim bottom with a bounce back - many stocks now rallying to their 50 day moving averages - should pose a nice entry points for shorts to begin new positions in due time. However current shorts in those stocks are probably feeling what I felt yesterday in my "No Mas, Ben" moment, and finally giving in. Nothing goes straight up or down so after such a tremendous dip, it would be a bit greedy to press your bet down in that sector.

Eventually these stocks will be great buys for the longer term, but I don't believe this is the time nor that it is even close to the time. Again, I have no true way to participate in this type of gaming as I cannot short in this fund. I am participating in a roundabout way with the UltraShort Real Estate (SRS) holding but that is more of an index of commercial REITs, not homebuilders. So I am sort of left out of taking advantage of an upcoming opportunity ... stinks to be long only.

Long UltraShort Real Estate in fund; no personal position