Recent data on new US home sales showed a big surprise to the upside, according to Saxo Bank head of equity strategy Peter Garnry.

New US home sales have reached their highest level in 9 years but this is still below the natural rate.

Garnry believes that the robust employment trend could spell a continuation of the US housing boom. And this trend could prove positive for companies like Home Depot and Toll Brothers.

Garnry is positive on Toll Brothers and his trade idea is to go long with a target of $40 and a stop at $30.