About That Ubiquitous Bullish Homebuilder Thesis...

The sexy 2015 homebuilder bull thesis gained popularity early on this year. But I was never too keen on it. In several prior videos, I noted how the homebuilders themselves were suspect about holding breakouts. Furthermore, the housing derivative plays, such as retail giants HD LOW SHW, were long in the tooth after brilliant multi-year bull runs. Updating that issue, we can see the likes of KBH LEN come under heavy selling this week. You can add BZH TOL, even PHM, to the list as well. I remain short LOW and am considering short HD again. SHW seems to have an aura of invincibility about it, bordering on the comical at this point. But even the best paint eventually wears thin...