Armstrong World (AWI) , Lennox International (LII) , Masco (MAS) , Owens Corning (OC) and Vulcan Materials (VMC) provide products and materials to every segment of the housing market, which includes new home construction, home resales and home improvement projects. These companies can also provide their products to infrastructure programs across the country.
Infrastructure spending will include roads, tunnels and bridges, and projects for water treatment, communications, schools, hospitals, and urban renewal.
Armstrong World provides ceilings and cabinets. Lennox provides air conditioning and heating systems. Masco provides home improvement and building products. Owens Corning makes insulation, roofing and siding products. Vulcan Materials makes the ingredients for concrete and cement.
Here's the scorecard for the housing index and the five housing related stocks.
PHLX Housing Index
Courtesy of MetaStock Xenith
The housing index has a gain of 19.7% from its post-election low of 222.83 set on Nov. 9. The index set a multiyear intraday high of 267.66 on Wednesday, which is 8.9% below the all-time intraday high of 293.66 set in July 2005. The 61.8% Fibonacci Retracement of the 81.5% decline from this high to the March 2009 low of 54.31 is a key support of 202.05. The recent high was a test of my semiannual risky level of 267.16 with my annual risky level of 271.20.