Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of homebuilder PulteGroup (NYSE: PHM) climbed 10% on Wednesday after a Wells Fargo sales survey of 20 markets showed plenty of strength.

So what: Wells' report showed an increase in orders for the third straight month, suggesting that U.S. housing should continue to recover going forward. Pricing in each of the 20 markets also improved, giving housing bulls -- Lennar, D. R. Horton, and Toll Brothers are also up nicely today -- plenty to be excited about.

Now what: I'd be cautious about riding this recent wave of optimism. Pulte is now up more than 150% from its October lows and currently trades at a price-to-book of 1.5, so much of those housing recovery hopes might already be baked into the price. Given the mix of housing, economic, and jobs data in recent weeks, going "all in" at these levels seems particularly risky.

Interested in more info on Pulte? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. The Fool owns shares of and has created a covered strangle position in Wells Fargo. Motley Fool newsletter services have recommended buying shares of Wells Fargo. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.