Homey Action in This Sector

The homebuilders are back at it again this morning, thanks to a spike higher in LGIH after earnings. LGIH was actually one of the worst charts in the sector headed into today. But a 17% gap higher sure does ease the pain for longs. 

Regarding the premier homies, DHI is still one of the leaders which continues to act well. On the updated daily chart, below, note how D.R. Horton has given very little, if anything, back after a steady rally in February. Indeed, the same can be said about many other of DHI's peers in the space. 

We continue to view the homebuilders as a sector potentially waking up from a long consolidation dating back several years now. And the outperformance even today seems to jive with that thesis. 

Elsewhere, gold, TLT, and VXX are all red again, with the first two likely pricing in a coming rate hike. If the Fed does, in fact, raise rates, I suspect gold and bonds could then see a bit of a buy-the-news counter-trend move. As for the VIX, bears simply must do a better job inflicting damage onto equities in order for us to see any type of meaningful move in volatility.