Homebuilder stocks TOL, LEN, and RYL are again testing their upper channels. It looks like indeed the dip in TOL was a shakeout. I took the buy signal off support last week, but didn’t swing trade these stocks more than a day. Anyone trying to swing trade them using last day candlestick lows as stops, would be out with the nasty shakeout yesterday. Surprise. The stocks are ramping today. TOL, LEN, and RYL obviously have similar patterns. I bought some TOL – Toll Brothers Inc., on an intraday buy signal. The strength today makes me think that someone took ‘em lower to buy in.
TOL seems to be the conservative mover in this basket of stocks. XHB is also a diversified way to play the homebuilders sector.
