Homebuilder Stocks

are showing some encouraging signs. The Homebuilder ETF (XHB) has been stabilizing near 20 lately and most of the stocks look similar to Hovaninan (HOV) shown below. The stocks have been battling with their 200 day MAs and it looks as though there could be a squeeze coming for the shorts. From June 15 through March 14, short sellers added 8.5 million shares, the average price of the stock during that period was approximatesly 11.15. The stock looks like it is in a low risk area for purchase with a worst case stop near 9.75. I have not looked at any fundamentals or when the earnings are due. I would suggest you also look at some of the other homebuilder stocks such as; PHM, RYL, DHI, NVR, CTX, etc.