***Homebuilder stocks led Thursday's bull run, ironically the last time I reported on the homebuilder stocks was when they bottomed, clearly they were defended at a critical technical juncture and have since had a swift rally...
Daily gains from Thursday 05.26.2005: TOL +6.91% BZH +5.24% HOV +5.19% RYL +5.10% DHI +4.80% PHM +4.26% LEN +3.79% CTX +3.04% JOE +2.59%
Some of these stocks made fresh record highs today while others are close just like the HGX. Is it true, will this new-age housing bubble correlate to the mania of the Nasdaq tech market through 1999 and in the early part of 2000? #msg-6378875
Funny thing is, the control of that rests in literally one hand, and that is the Federal Reserve, do they continue to raise rates to support a bankrupt dollar and crush the housing bubble? What would happen in the event of an economic slowdown, how will people pay back their mortgages to the banks, what if the banks foreclose and drive themselves into a market which lacks buyers, would they ever get back their loaned out debt? Too many questions with this housing bubble, and not enough answers... yet it can actually get bigger before it busts!