Vrudny, I actually think that shorting homebuilders is a safer play than shorting the market right now. Homebuilders are beaten down but ask yourself if there is any chance that their earnings are going to recover? If their earnings are not going to recover then there is only downside for their price. Look at their graph over the last five years. It matches with the RE boom. Do you think there is any chance that their value is going disassociate from RE bust? I am actually encouraged that so many people think they are done going down. That tells me that the gravy train is far from full. Choo, Choo!
