Will Homebuilders ETF See Bearish Pressure? (XHB)

The ETF Professor wasn't stunned to see a report by Fox-Pitt Kelton today saying that shares of homebuilders stand on shaky foundations. The brokerage firm recommended steering clear of the sector through the end of this year.

It's reasonable to expect that renewal of the first-time buyer tax credit has been priced into these stocks and that could weigh on near-term gains for the sector.

The way to play homebuilders via an ETF is the SPDR S&P Homebuilders ETF (NYSE: XHB). XHB is up nearly 27% year-to-date and this ETF is a must-watch for active traders.