The HMI peaked at 72 in June 2005, which is when I predicted a peak of the share prices for the homebuilders. The index has been below 50 since May 2006, and home prices peaked in June/July of 2006. The low for the index was eight in January 2009. My benchmark for the homebuilder industry is the PHLX Housing Sector Index ( HGX) (191.18). It has been moving sideways since Jan. 24 with highs between 192.39 and 194.06. HGX is up 11.6% year-to-date setting its 2013 high on Feb. 13. My semiannual value level lags at 152.56 with a weekly pivot at 189.82 and monthly risky level at 194.28 lining up the Feb. 13 high. Chart Courtesy of Thomson/Reuters
Reading the Table
OV/UN Valued: Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine. VE Rating: A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy. Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage. Forecast 1-Year Return: Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months.