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Homebuilder stocks surged to new 52-week highs today on a major breakout.

Who had this on their 2023 bingo card? pic.twitter.com/JylwBr96Uq

— Bespoke (@bespokeinvest) April 19, 2023

I have been expecting weakness in the housing market due to high mortgage rates and a weakening economy – but it isn’t showing up in the results of the home builders. DR Horton (DHI) reported earnings for the quarter ended March 31, 2023, this morning. New Orders – a leading indicator – seemed to be rolling over last quarter – down 38% – but recovered in the current quarter to only -5%. DHI sold 76,000 homes in FY22 and they guided FY23 to 77,000-80,000. As a result, the stock is +7.5% and I’m being squeezed along with the rest of the shorts. 

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