Homebuilder Stocks See Volatile Mid-Day Trading, Regain Ground

Homebuilder names such as Lennar Corporation LEN, D.R. Horton, Inc. DHI and KB Home KBH among others saw heavy selling just before 1 p.m. ET. On December 31, Nasdaq reported outflows in SPDR S&P Homebuilder (ETF) XHB reached 3 percent week over week, signaling many investors fled exposure.

Traders speculated of a possible ETF creation driving the mid-day volatility. Reports have been circulating of various hedge funds seeking to design trades that would pay off should the structural makeup of the ETF market fail.