Homebuilders graph

Quote from NYSEscalpa:

I am looking to get into trading this sector more heavily- I know that liquidity is an issue on many of these stocks, but the volatility is there!!!
Anyways, I would like to get more information on how the homebuilders and mortgage backed securities respond to changes in the treasury and debt markets. Obviously, these stocks are surging due to the current interest rate environment and the expectation that the Fed will keep the funds rate at 1%, the lowest level in 46 years. But as far as short term fluctuations in these stocks, what are the key numbers that I need to be watching?? If I want to trade homebuilders and MBS, what is the comprehensive list of numbers & reports that I should be looking for?? Thanks in advance for the help, this is an area I have wanted to get into, but admittedly know little about.
More...

Good luck (you will need lots), I was learning CFC today. I think I was up at one point but ended up down on the prick. Suprisingly, this the most liquid out of the homebuilders/mortgage stocks. Some of the homebuilders are so horrible that I have seen slippage of 60 cents on some of them.

These stocks follow the bond market on days like today. So some of them can make some sick moves, which is why I have been playing CFC which I do believe is the best out of that universe. But the slippage, incosistent liquidity, psychotic swings and jerking around by the specialist gets absurd at times and is VERY costly. It does make more sense to just trade ZB, unless you do not have that option like me.

waggie trades the homebuilders, so he should have some input.
 
Do you always ask stupid questions as the bond market gets hammered, or do you just enjoy looking like a fool?

No wait.
Don't answer that!

:D
 
You must log in or register to reply here.
Back
Top