Tuesday, January 29, 2008

XHB

Curvey-el mentions in the comments section the performance of the homebuilder ETF. It will be interesting to see how this performs tomorrow post-Fed announcement--it may give us a peak into how "real" the rally has been. I still do not see improving fundamentals, but rather shoring up the walls so their businesses do not implode in a pronounced downturn.

Note that homebuilding has a very high short interest. I believe that much of the 'rally' has to do with squeezed shorts. Here's the Nasdaq chart on short interest:

I'll update the chart after market close tomorrow.

1 comment:

Leisa said...

Fidelity has NO shortable shares for XHB