No Bubble Found in Housing's Charts

Don't buy into comparisons with the Nasdaq. Plus the Nasdaq, Research In Motion and more.
By Gary B. Smith ,

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The "it's a bubble" talk has been heating up with each passing day that housing prices don't crash.

Let's discount half that talk, because it comes from that great camp of folks who absolutely abhor good times.

But we'll assume the other half doesn't have any stake in the outcome other than the need to be right. The question, then, is whether they are right.

Of course, I don't know the answer, but I do know the charts of housing stocks certainly don't reflect an overbought condition.

Instead, they present some moderate strength, or in the case of

NVR

(NVR) - Get Report

below, some solid basing action, which is normally a prelude before a new leg up.

Naturally I'd like to see that break out before I bought, but in any event, I don't see the same parabolic moves I saw in the

Nasdaq

during its heyday.

Today, the

Nasdaq

,

Research In Motion

( RIMM),

Nautilus Group

(NLS) - Get Report

,

Emcore

(EMKR) - Get Report

,

Silicon Graphics

(SGI)

and

RehabCare Group

( RHB).

And that is the final word from Potomac, Maryland, where many people want to equate the housing "bubble" with the Nasdaq bubble. The one big difference I see, though, is that a lot of folks with inflated home prices won't be selling regardless of what happens.

As I've told my kids, they'd better start fighting now over who gets the house, because after all the time and energy my wife and I have put into it, we're sure never moving!

Charts produced by TC2000, which is a registered trademark of

Worden Brothers Inc.

Gary B. Smith is a freelance writer who trades for his own account from his Maryland home using technical analysis. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks.

Smith writes a daily technical analysis column for RealMoney.com and also produces a daily premium product for TheStreet.com called The Chartman's Top Stocks --

click here for a free two-week trial. While Gary cannot provide investment advice or recommendations, he invites you to send your feedback to

gsmith@thestreet.com.

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