Sector Watch-Housing
Housing (RUF)
Bullish
Sector trading above its…
20-day Moving Average: YES
50-day Moving Average: YES
100-day Moving Average: YES
Sentiment:Pessimism remains strong against the housing sector. Of the 159 analyst ratings offered up on the components of the housing sector, Zacks reports that less than 42 percent come in at a “buy.” What’s more, options players have loaded up on bearish bets toward the sector. Short sellers have yet to abandon this group as well. The average short-interest ratio for the components of the sector comes in at 5.6 days to cover, while the average percent of the float sold short sits at a lofty 11 percent. There is more than enough fuel for a short-covering rally.
Outlook: Technically speaking, RUF finished November above its declining 10-month moving average, marking its first monthly close above this trendline since September 2005. The index’s recent pullback has left it sitting near support at its ascending 10-day moving average, which it could use as a springboard to launch it on the next leg of its uptrend.
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