NEW YORK ( TheStreet) -- The housing market has become overvalued fundamentally and overbought technically after astronomical gains since October 2011 and year to date. The construction sector is 8.4% overvalued according to www.ValuEngine.com and my benchmark for the sector, the PHLX Housing Sector Index (HGX), is extremely overbought on its weekly chart, and has been overbought since the week of Aug. 10. The HGX is up a whopping 113.8% since Oct. 2011, and up 52.9% year to date.I have been tracking the homebuilder stocks since 2005 when I predicted the housing bubble and recommended booking profits on the homebuilders. On June 21, 2005, I wrote this for Realmoney.com, "Homebuilders' Charts Testing Hearts," and included the table of levels shown below.
Homebuilders' Valuations Are Extremely Speculative
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