Two housing stocks could be building toward a breakout, traders say

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Two housing names could be building toward a breakout, traders say $DHI $MDC (via TradingNation)

There is "a really nice technical pattern here, sort of an inverse head and shoulders. … We're through just at about $48. It's a pretty good jumping off point to see if we can get those highs," Gordon said Thursday on CNBC's "Trading Nation."

"Let's look at the 10-year yield. … We've broken below the 2% level, making new lows there, which is driving housing. The one thing I would say is [there is] a little bit of divergence. You have the ITB not yet at those old highs, so we are playing a little bit of a catch-up here. I think yields need to continue to drop to see buying in housing," Gordon said.

Quint Tatro, founder and president of Joule Financial, agrees it's a good time to break ground on homebuilders.

 

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TradingNation DRHorton has climbed over 45% this year and equilarinc notes that CEO David V. Auld was awarded $14,738,672 in 2018, indicative of a 43% increase in pay from his 2017 salary. $DHI execpay corpgov

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