Housing stocks could be building a solid foundation for a breakout.
The ITB home construction ETF has rallied nearly 5% in February, putting the group in spitting distance of all-time highs not seen in 14 years.
“I absolutely love the space and I think this is largely driven by the overall macro environment,” said Danielle Shay, director of options at Simpler Trading, on CNBC’s “Trading Nation” on Tuesday. “We have strong consumer spending numbers, low unemployment. We also have a Fed that cut rates multiple times last year so, of course, the housing market is going to be booming.”
Top stocks in the ETF such as Home Depot, Lowe’s, Sherwin-Williams and D. R. Horton are all sharply higher. Stocks such as Lennar, Toll Brothers and PulteGroup are all at or less than 1% from 52-week highs.