The thinking when we link is we are linking to smart writing by people who have shown themselves to have something on the ball for a very sharp audience who don't need or desire me to point out why we post something.
That "very sharp audience" line is an understatement, I've found our readers to be scary smart.
So we take a minimalist approach.
Sometimes though a bit of context is in order, in this case it is provided by a link at Pragmatic Capitalism who this morning linked to the "Lumber...Top" post from McClellan.
Here's what the chart was saying about the hombuilders a couple weeks before they hit their October 2011 lows and started a five-month 60% run. From McClellan Financial:
Time For a Rally in Unloved Housing Stocks
September 16, 2011
Sentiment could not be much worse for the U.S. housing market than it is right now. And why shouldn't people be pessimistic? All of the governmental efforts to stimulate a housing rebound, so people start thinking that if the government cannot fix it, what can?...MOREHere's the comparison chart of the homebuilder ETF's ITB and XHB vs. the S&P, via Yahoo.
Since their early October lows they are both up dramatically. Via Yahoo: