It's a strange reaction to say the least. The broad market is down because of more gloomy housing data. But the companies that are most directly tied to the health of the housing market are up?
It doesn't make a heck of a lot of sense. It may be a case of traders betting for the umpteenth time that this is finally a bottom for housing.
That's a mistake. Now that the tax credit for homebuyers has expired, it's difficult to imagine what can juice the real estate market again in the near-term.
So traders may be banking on the fact that the worst is really over for housing. But one fund manager who owns shares of Pulte said he's holding the stock for the long haul, not because he expects immediate improvement on the horizon.
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