Only name of the top tier holding up is Pulte Homes (PHM) thus far. And by that I mean "relatively" holding up. We are seeing multiple names break back down beyond support. Remember, these stocks have had huge rallies multiple times the past 18 months, only to break down. EVENTUALLY, one of these rallies will hold. But do you really know when? When housing comes back it won't be a slingshot back like some people assume - we are going to have quarters of stagnation, and then hopefully some mild moves up. Think of your tech stocks from 2000, and how they acted in 2001, 2002, 2003, 2004.
With that said, I do try to allocate up to 10% of the portfolio for more short term positions so if we get another woosh down in the markets, I will probably try my hand in a homebuilder or two (and a financial) based on how quickly and strongly they bounce in Kool Aid times..... further as each iteration of weakness passes, I expect a serious government intervention to be announced.
Financials are looking even worse - the charts of Lehman (LEH) and Goldman Sachs (GS) are outright sick - no signs of strength at all. I guess we moved from Kool Aid stage back to "what? more write downs and financial injections anticipation" stage. Goldman is approaching January lows - wow. This company has been held up as the teflon investment bank - based on the stock action one must just assume they will have their first write off coming. And if they write off, everyone has to question their assumptions - since "no one will be safe" if Goldman actually has to take write downs.
