Homebuilder Stocks: Short Squeeze?

Homebuilder Stocks: Short Squeeze? Homebuilder stocks, among the biggest gainers this year, are up sharply again this week amid a slew of earnings reports and slightly optimistic housing data. That buying can send the stock higher, pressuring more short-sellers. America's biggest home builders are posting the largest gains in sales and new orders in years, fueling speculation that the sector is starting to turn the corner. Although many builders reported continued loses for the first quarter, the loses are narrowing when it's compared to earlier quarters and the companies are citing a significant jump in traffic. Builder stocks, measured by the Dow Jones U. Home Construction index, are up"more than 30% this year. Lennar jumped 3. "Homebuilders have benefited"this year as the"beleaguered"housing market has exhibited signs of a turnaround. R. That is a short squeeze, and it can be profitable to investors who own the stock while it occurs. 7% and D. 3%. To be sure, there's still a lot of skepticism that surrounds homebuilders and the housing market in general. But as prices keep rising, shorts could be getting "squeezed out of their positions, which could push prices even higher. And of"the seven large builders that have reported quarterly results recently, the average order increase has been 24%, according to ISI Homebuilding Research. While short-selling is generally a negative sign, large amounts of it can be a positive one. Short interest represents the number of shares that have been sold short. Horton tacked on 2. Homebuilder Stocks: Short Squeeze? Trade News selected by Local Linkup on 28/04/2012