First chart is the daily chart of Toll Brothers, one of the nation’s largest home builders.
What you see is a stock that trades in range. It is moving up and down , waiting to see the next direction.
The second chart is the weekly chart of Toll Brothers. Now you see the real picture. The housing market is bad, very bad. If on any day the market moves up, it is based on “hope” that the worst is over.
The third chart is the monthly chart of Toll Brothers. Somehow this long term trend chart indicates some positive sign. It tells that, if America continues to be the best place in the world, then we could assume that the worst is over.
Stock market is the leading indicator of the economy. Housing sector is the leading indicator of this market. Is America still the best place in the world? President Obama certainly has brought in the first positive confirmation.
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