Prudently Prune Homebuilders

Since all of these stocks appear range-bound, I will ignore their weekly chart profiles, as this measure works best in trending markets.

Centex (CTX Quote) is trading right around its fair value. Investors should wait to add to positions on weakness to my semiannual value level at $69.86 and reduce positions on strength to my quarterly pivot at $78.22.

KB Home (KBH Quote) is trading 3.6% below its fair value. Investors should wait to add to positions on weakness to my semiannual value level at $66.51 and reduce positions on strength to my monthly risky level at $88.23.

Lennar (LEN Quote) is trading 11.8% below its fair value. Investors should wait to add to positions on weakness to my annual value level at $57.35 and reduce positions on strength to my semiannual risky at $73.24.

Pulte Homes (PHM Quote) is trading 12.7% below its fair value. Investors should wait to add to positions on weakness to my semiannual value level at $37.26 and reduce positions on strength to my quarterly risky level at $49.90.

Ryland Group (RYL Quote) is trading 7.2% below its fair value. Investors should wait to add to positions on weakness to my annual value level at $70.16 and reduce positions on strength to my semiannual risky level at $99.48.

Toll Brothers (TOL Quote) is trading 10.9% below its fair value. Investors should wait to add to positions on weakness to my annual value level at $29.99 and reduce positions on strength to my quarterly risky level at $49.40.