[...] The Dow Jones Home Construction Index (DJUSHB) is barely green despite the rip-roaring 26-point, 1.3% gallop higher by the S&P 500. The DJUSHB initially bounced with SPX, dropped after the disappointing builder “sentiment” index. After it dropped the HFT algos tried to save the homebuilders with sharp bounce back into correlation with the SPX. As I write this, the DJUSHB is now negative on the day.
But alas, fundamentals re-assumed control of the homebuilder sector. I use the DJUSHB because it has the highest concentration of homebuilder stocks out of any of the indices/ETFs. It also has a healthy dose of companies which supply new homebuilding activity. If the DJUSHB can not move higher on a day like today in which insanity is driving stocks, it means something is very broken with the fundamentals underlying the sector.
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