Housing stocks have had a huge run off of a bottom over the last 6 months. Are they done? I don't know but I suspect it is only the start of a larger move... Time will tell.
Here is a couple charts of Hovnanian the house builder...
IF the price can make it above recent high it has a long way to go. Of concern is the recent high volume on the downside. Sometimes this happens as the short term traders get out and the long termers buy up their shares. Time will tell of course.
The trade would be on the anticipation of a breakout to new highs, then new highs.
If I'm wrong the sellers will be waiting. I'm thinking they may have sold already.....
Control your risk.