Small Caps That Hold Homebuilders Have Done Well
If you invest in a Small Cap Fund that invests in homebuilder stocks, then chances are good that you have done well over the last couple of weeks. Some of these securities have gone up 25% or more. Does this make it a good time to sell? Absolutely.
A lot of these small cap homebuilders have become strictly overbought. The relative strength index (RSI) on a lot of these things has triggered a very firm “sell,” at least in the short term until the shares fall back to normal levels.
The last thing an investor wants is to hold on so long that the gains are lost forever.
