Investors generally have a fixation on the price-to-earnings (P/E) multiple while seeking stocks that are trading at attractive prices. A widely favored approach by value investors is to chase stocks that have a low P/E ratio.

The market fell on the last day of November. But that didn’t stop it from posting an impressive month of gains.

The homebuilding industry has been on a tear lately after being stalled by the coronavirus pandemic.

The S&P 500 (SPY​) printed its best quarter since the fourth quarter of 2013. While the index gained 7.2% for the third quarter of 2018, home builders went in the exact opposite direction.

Prior to July, the reaction to the earnings report of home builders held larger sway on ITB, the iShares US Home Construction ETF. This time around, the economic data took on at least as much significance as the earnings data.

That said, there is plenty of reason to look one level deeper: the greatest individual opportunities in the real estate sector.

Home builders weakened just ahead of the stock market’s sell-off. The breakdown in iShares US Home Construction ETF (ITB) took prices right back to November’s angst over tax reform.

The sharp and impressive rally in Tri Pointe Group came to a halt after angst over tax reform. A test of the 50DMA uptrend looms ahead.

The briefest of dips for homebuilder stocks did arrive in the form of angst over the Republican tax reform bill. In a pattern familiar in this bull market, the angst lasted exactly one day before these stocks resumed their rallies.

Take a look at these three trading ideas to prep you for the next trading session.

After three months of wide deviations, the regional changes were more uniform for the previous three months. Wide deviations returned for September with some impact from the hurricanes in the Southern region.

Since the last Housing Market Review reported in July, 2017 for June, 2017 there has been a marked significant change in tone for home builders.

The Chart of the Day is TRI Pointe Homes.The growth stock company is involved in the design, construction and sale of single-family homes.

U.S. housing starts turned the corner in June, rebounding from a three-month long slump. Picking up homebuilding stocks continues to remain a lucrative option at this time.

Strong reports from the housing market and solid earnings reports combined with an initially benign response to another rate hike from the U.S. Federal Reserve to lift ITB to higher heights.

Like last month, I am preparing to take advantage of a fresh buying opportunity despite the surface temptation to conclude that it is time to get bearish on the housing sector.