It’s been a big month for homebuilders.
Home construction stocks — tracked by the iShares U.S. Home Construction ETF, ticker ITB — have climbed nearly 9% in the last month, with names like KB Home and Toll Brothers notching double-digit gains.
But even with the positive housing data and the Federal Reserve cutting its benchmark interest rate by 25 basis points on Wednesday — both of which are generally bullish for homebuilders — experts aren’t signing off on chasing the group.
“We’re looking at a similar situation as we saw back in April,” Matt Maley, chief market strategist at Miller Tabak, said on CNBC’s “Trading Nation,” referencing a chart of the ITB. “Back then, I said, ‘Jeez, the group’s getting overbought on a near-term basis,’ and … it’s actually a little bit more overbought than it was in…