On the Edge Again – The Housing Market Review

on the edge (Credit: Construction of a solar passive house by Geres - Acting for climate solidarity on Flickr)

Housing Market Intro and Summary June’s housing market showed some evidence of slight cooling with the Spring selling season in its late stages. July’s housing data showed a widening divergence in fortunes between an on-going decline in existing single-family home sales and resilient activity for new single-family homes. Enveloping both markets are elevated pricing pressures. … Read more

The Turkish Lira’s Surge: How CBRT’s Monster Rate Hike Changes the Game

monster rate hike (Credit: Ping Timeout, Singapore 2010 Youth Olympic Games - Soccer | Jalan Besar Stadium on Flickr)

After Turkish President Recep Tayyip Erdoğan’s “war of economic independence” came to an official end, I waited for evidence that the Central Bank of the Republic of Turkey (CBRT) would get serious about fighting inflation. The monetary evidence may have arrived on August 24th in the form of a monster rate hike from 17% to 25%. In … Read more

A Slight Summer Cooling from Spring’s Peak – Housing Market Review

cooling (Yosemite waterfall)

Housing Market Intro and Summary May’s housing market was remarkably strong and represented the peak velocity of the spring selling season. June followed up with more relative strength but a slight sequential cooling as mortgage rates continued a march back to the top of the recent range. Housing starts, new home sales, and existing home … Read more

Sailing Past the Sunset – Housing Market Review

sailing past the sunset (Credit: sailing past the sunset by jackfraser on Flickr)

Housing Market Intro and Summary The spring selling season housing market looked “defiant” going into the end of a cycle. In June, the housing market looks like it refuses to let the cycle end as it sails past the expected sunset. New home sales and housing starts surged as the market for existing homes barely … Read more

Bulls Fade Fast from the Overbought Frontier – The Market Breadth

fade (Credit: Hercules Wrestling the Bull by carfull...from Wyoming on Flickr)

Stock Market Commentary: The summer of loving stocks is facing its first real test. In the middle of the week, the rally finally failed at the threshold of overbought market breadth. The stock market closed the week with market breadth confirming the end of the primary rally and the start of an important test of … Read more

Fed Avoids Ending the Summer of Loving Stocks

summer of loving stocks (Credit: Hippie tag ! by jocelyn.aubert on Flickr)

The Federal Reserve gave tacit approval to the unfolding summer of loving stocks. In its June decision on monetary policy, not only did the Fed hold interest rates steady, but also it rolled out improved overall forecasts for the economy. GDP growth for this year went from 0.4% to 1.0%, presumably lowering the odds for … Read more

A Looming Collision Between Overbought Trading and the Fed – The Market Breadth

collision (Credit: Collision Course by charlieishere@btinternet.com on Flickr)

Stock Market Commentary: Market breadth almost reached overbought trading territory last week. The Federal Reserve is issuing yet another missive on monetary policy this coming Wednesday. The market’s script is arranged for the potential drama of a collision between the euphoria of overbought trading and a Federal Reserve that is eager to moderate the market … Read more

The Brutal Failure of Turkey’s Monetary Experiment

brutal failure (Credit: Hands to the head by hernanpba on Flickr)

Brutal Failure Turkish President Recep Tayyip Erdoğan’s “war of economic independence” has ended in a brutal failure. The president used his central bank to fight inflation with rate cuts and lost in spectacular fashion. This experiment with unconventional monetary policy severely devalued the Turkish lira (USD/TRY) and helped to generate massive inflationary pressures. The chart below … Read more

Defiant to the End of the Cycle? – The Housing Market Review

defiant (Credit: The Defiant Ones #caturday #catsofinstagram #instacat #cats by k8southern on Flickr)

Housing Market Intro and Summary The seasonal trade on home builders ended in the middle of one of those critical junctures for these stocks and the housing market in general. Mortgage rates are done coming down for now and could break to new highs as the Federal Reserve continues hiking short-term rates to battle inflation. … Read more

The NASDAQ Quietly Tries to Wake Up A Sleepy Market – The Market Breadth

sleepy market (Credit: Stretch Cat by RafeB on Flickr)

Stock Market Commentary: The U.S.’s looming debt ceiling crisis is a manufactured emergency. The whole political wrangling could end in an instant with a very simple decision to keep budget negotiations in the budget process. Thus, the stock market’s relative calm about the political stalemate does not surprise me. Moreover, who are the motivated sellers … Read more