CHART OF THE DAY: You Won't Believe Much The Homebuilder Stocks Have Rallied

button more charts
button chart prev
button chart next

This morning, Citigroup analyst Josh Levin pointed out that inventory of available homes for sale has been collapsing, and that the media hasn’t paid attention to this major shift in housing market dynamics.

That may be true, but the market has definitely noticed something going on.

The homebuilder stocks have been on a rocket-ride since the beginning of the quarter, with XHB (the homebduiler ETF) rallying a ridiculous 32% since its low on October 3. It hit a low of 12.21 and is now at around 16.12.

This is a monster move in one of the most hated sectors in the world, and so obviously needs to be paid attention to.

chart of the day, spdr series trust spdr homebuilders, october 2011

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.