NEW YORK (TheStreet) - Armstrong World (AWI - Get Report), Lennox International (LII - Get Report), Masco (MAS - Get Report), Owens Corning (OC - Get Report) and Vulcan Materials (VMC - Get Report) are five leading non-homebuilder components in the PHLX Housing Index. All five set all-time or multiyear highs this week following positive homebuilder sentiment and solid housing starts data.

Here are the updated trading guidelines for these stocks.

Let's look at the weekly chart for the housing index:


Courtesy of MetaStock Xenith

The housing index has a year-to-date gain of 16.9% beating the Standards & Poor's 500 Index which has a gain of just 1.8% as of Tuesday's close of 2,096.92.

The weekly graph for the housing index focuses on the Fibonacci Retracement levels of the popped housing bubble which saw this index decline 81.5% from 293.66 in July 2005 to a low of 54.31 in March 2009.

The housing index has been above its 61.8% retracement at 202.05 since July 2014 with a multiyear intraday high of 252.20 set on Aug. 18. The 200-week simple moving average at 180.37 is the longer-term uptrend for this index and the reversion to the mean, last tested the week of Jan. 6, 2012. This is a re-inflating bubble with a key chart resistance -- the February 2007 high of 254.91.

Armstrong World had a close of $59.78 on Tuesday up 16.9% year to date, and up 23% above its Jan. 16 low of $48.60. The stock set its 2015 high of $60.70 on Aug. 18. The designer of floors, ceilings and cabinets is above its 50-day and 200-day simple moving averages of $55.51 and $53.88, respectively.


The weekly chart is positive with the stock above its key weekly moving average of $57.01 and its 200-week simple moving average of $51.63, which has been the reversion to the mean since August 2010. The weekly momentum reading is projected to rise to 56.52 this week up from 58.33 on August 14.

Investors looking to buy Armstrong should place a Good-Til-Canceled limit order to purchase the stock if it drops to $57.61, which is a key level on technical charts until the end of 2015.

Investors looking to book profits should place a Good-Til-Canceled limit order to sell the stock if it rises to $59.91 and $62.08, which are key levels on technical charts until the end of August and September, respectively.

Lennox International had a close of $126.73 on Tuesday up 33.3% year to date and 36.4% above its Jan. 6 low of $92.94. The stock set an all-time intraday high of $126.85 on Tuesday. The air conditioning and heating company is above its 50-day and 200-day simple moving averages of $114.40 and $105.79, respectively.

The weekly chart for Lennox is positive but overbought with the stock above its key weekly moving average of $117.97. The weekly momentum reading is projected to rise to 80.23 up from 72.27 on August 14 moving above the overbought threshold of 80.00.


Investors looking to buy Lennox should place a Good-Til-Canceled limit order to purchase the stock if it drops to $119.97, which is a key level on technical charts until the end of this week.

Investors looking to protect profits should consider a sell stop if the stock has a weekly close on a Friday below $122.08, which is a key level on technical charts until the end of September.

Masco had a close of $28.35 on Tuesday up 12.5% year to date and is 38.8% above its Jan. 16 low of $20.42. The stock set an all-time intraday high of $28.59 on Tuesday. The stock is above its 50-day and 200-day simple moving averages of $24.76 and $23.11, respectively.

The home improvement and building products company, has a positive weekly chart with the stock above its key weekly moving average at $25.73. Its weekly momentum reading is projected to rise to 77.19 this week up from 68.13 on Aug. 14.

Investors looking to buy Masco should place a Good-Til-Canceled limit order to purchase the stock if it drops to $21.95, which is a key level on technical charts until the end of 2015.

Investors looking to protect profits should consider a sell stop if the stock has a weekly close on a Friday below $26.23, which is a key level on technical charts until the end of August.

Owens Corning had a close of $47.57 on Tuesday up 32.8% year to date and is 37% above its Jan. 5 low of $34.73. The stock traded to an all-time intraday high of $47.89 on Tuesday and is above its 50-day and 200-day simple moving averages of $42.87 and $39.74, respectively.

The provider of insulation, roofing and siding has a positive weekly chart with the stock above its key weekly moving average of $44.39 with its 200-week simple moving average of $37.08. Its weekly momentum reading is projected to rise to 77.45 up from 72.51 on Aug. 14.


Investors looking to buy Owens should place a Good-Til-Canceled limit order to purchase the stock if it drops to $39.59 and $36.21, which are key levels on technical charts until the end of September and the end of 2015,respectivly.

Investors looking to protect profits should consider a sell stop if the stock has a weekly close on a Friday below $47.58, which is a key level on technical charts until the end of August.

Vulcan Materials had a close of $99.05 on Tuesday up 50.7% year to date and is 54.1% above its Jan. 6 low of $64.28. The stock set an all-time intraday high of $99.41 on Tuesday and is above its 50-day and 200-day simple moving averages of $90.79 and $80.58, respectively.

The concrete and cement company has a positive weekly chart with the stock above its key weekly moving average of $92.87 with its 200-week simple moving average of $57.56. Its weekly momentum reading is projected to rise to 74.96 this week up from 69.91 on Aug. 14.

Investors looking to buy Vulcan should place a Good-Til-Canceled limit order to purchase the stock if it drops to $89.27, which is a key level on technical charts until the end of September.

Investors looking to book profits should place a Good-Til-Canceled limit order to sell the stock if it rises to $99.45, which is a key level on technical charts until the end of August.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.