Lennar was selected to move into the S&P 500 and Beazer is moving into the mid-cap 400. The selection is a surprise to most people as speculation was for Google to move into the S&P 500. The selection help these two stock surged on heavy volume as the index funds will not have to readjust there positions to accommodate the selection. Although the selection was positive for the home builder, but I think the group is going to be under pressure because of rising interest rate. Looking at the group today, most ended in the positive territory except for Toll Brothers. The group’s move is just not bullish enough for me, so I’m bearish on the home builders and will consider shorting them.

This entry was posted on Monday, October 3rd, 2005 at 4:37 pm and is filed under Stock. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.