Former FDIC Chair Sheila Bair is one of the few honest voices in Washington, and one of the very first to warn of the housing crisis.
Now she is warning that new buyers in home-builder stocks could easily get burned: “I think it is slowly healing. [But] we are not out of the woods yet. I think there is a risk of a double-dip in housing.”
Meanwhile, homebuilding stocks are spinning their wheels after making another attempt at last week’s highs.
Bottarelli Research Tip: The weekly chart of Lennar (LEN – NYSE)shows that LEN is putting in a Doji at the top of trend. This is a strong indication that the bulls have lost conviction, and that the rising trend of the past two weeks has come to an end. Next stop for LEN: $23.28.