Strong stocks across the board today into the close. Waiting on some better entry points to add to our names. We added CAT to our watch list.
We pulled the trigger on Pulte Homes PHM today because it has broken out of a 5 year range and it seems like other housing companies are doing the same. It is a sector we feel we needed exposure to because money managers stay in relentless pursuit of it. The Case Shiller index says housing usually bottoms every 5 years too after a correction, and U.S. housing prices hit their peak’s in 2006. So it seems like a reasonable time to begin a long term position being nearly 7 years since. The company is well run with a clean balance sheet. (Yahoofinance/ PHM). (We need jobs though).
But the trend is your friend. And I think that the Case Shiller Index is key.