This morning, Citigroup analyst Josh Levin pointed out that inventory of available homes for sale has been collapsing, and that the media hasn’t paid attention to this major shift in housing market dynamics.
That may be true, but the market has definitely noticed something going on.
The homebuilder stocks have been on a rocket-ride since the beginning of the quarter, with XHB (the homebduiler ETF) rallying a ridiculous 32% since its low on October 3. It hit a low of 12.21 and is now at around 16.12.
This is a monster move in one of the most hated sectors in the world, and so obviously needs to be paid attention to.
Read more: http://www.businessinsider.com/chart-of-the-day-xhb-rally-2011-10?nr_email_referer=1&utm_source=Triggermail&utm_medium=email&utm_term=Money%20Game%20Chart%20Of%20The%20Day&utm_campaign=Moneygame_COTD_102411#ixzz1bjibHdWx