NEW YORK ( TheStreet) -- Homebuilder stocks have set tradable ranges since the PHLX Housing Sector Index (HGX) (195.73) set a multi-year high at 198.06 on March 20 the day after I wrote, Sell Downgrades Weaken Homebuilder Foundations.From that high to the April 18 low of 174.43, HGX fell a quick 11.9%. On that day I wrote Homebuilder Upgrades Fortify Potential Sinkholes and provided fresh buy-and-trade parameters for the homebuilders I have been covering. On Monday HGX set a new multi-year high at $198.33, up a solid 13.7% from the April 18 low.
Last week we learned that new home sales rose 1.5% in March to a seasonally adjusted annual rate of 417,000. The National Association of Home Builders described this report as getting half-way back to a normal housing market.