Since the December 1st pivot date the entire stock market has rallied higher. Most industry groups have participated in the broad-based advance. Often money will rotate from one sector to the next depending upon how far a particular sector has rallied. Well, it now appears that the homebuilder sector has now reached the top of its trading range. When a stock or industry group reaches the top of its range the institutions that own the stocks will usually look to start unloading or sell the stocks. This is usually when the public or retail traders are buying the stock because they feel that they want to own something that is up so much. The public usually does the opposite of the institutions.
Toll Brothers Inc.(NYSE:TOL) has rallied higher since late November when the stock traded around $17.35 a share. Today Toll Brothers Inc. is trading at $19.50 and this is the high range for the stock over the past three months. Therefore, this is when the institutions will begin to start unloading or feeding the stock out to the public. In other words a pullback will begin shortly.
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Kylie Bax Diora Baird Laura Prepon Ashley Scott Michelle Behennah
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