Home-builder Stocks Hit A Sinkhole

 | Oct 25, 2012 01:50PM ET

The home-builder sector, Thursday, came under selling pressure. The sector has been one of the strongest industry groups throughout 2012. One of the leading stocks in the home-builder sector is Toll Brothers Inc. (DHI ) and the iShares Dow Jones U.S. home Construction ETF (ITB). This entire sector is overbought and extended in the near term, however, traders should watch closely for a potential long trade after any significant correction.