Abet Chichi2

[xe2dy]

Homebuilders are flying. Looking for a top.

http://stockcharts.com/candleglance?CTX,DHI,LEN,NVR,PHM,WLS,RYL/C/B14

U.S. home building sector soars to new high
10/23/2003 2:21:16 PM

NEW YORK, Oct 23 (Reuters) - U.S. home building stocks on Thursday surged to a record high after several companies, including No. 1 ranked Pulte Homes Inc. (PHM) , reported quarterly earnings that showed the market continued to sizzle, despite higher mortgage rates.

The Dow Jones U.S. Home Building Index <.DJUSHB>, a broad measure of U.S. home construction companies, reached a record high of 548.92, up nearly 4 percent.

Pulte shares rose $6.43, or nearly 8 percent, to $84.44 in early afternoon trading on the New York Stock Exchange, after having traded as high as $84.70. After Wednesday's market close, Pulte reported third-quarter earnings that were 42 percent higher than the prior year and also raised its outlook for the full year.

Earlier in the week, Ryland Group Inc. (RYL) and Centex Corp. (CTX) reported stronger earnings. On Thursday, shares of Ryland were up $2.21, or 2.7 percent, to trade at $86.61. They set a record high of $86.65 earlier in the day.

Centex shares were up $3.85, or 4.2 percent, trading at $94.75 a share. Earlier, its shares reached a record high of $94.80.

"I think shorts must be covering or something," Natexis Bleichroeder Inc. analyst Barbara Allen said.

The earnings reflect orders taken three to six months ago when mortgage rates were coming off their historical lows, she said.

"People who know this industry should have known that earnings would have been very good," Allen continued. "This is probably the best quarter for earnings that the group will report this cycle."