ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
It was the soundbite on the U.S. housing market heard from near and far: Despite a healthy economy, we are seeing a moderation in demand. Fourth quarter contracts declined 15% in dollars and 13% in units compared to a difficult comp from 1 year ago. Fourth quarter demand flowed to a per community pace more … Read more
AT40 = 31.5% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 25.5% of stocks are trading above their respective 200DMAs (just off a 32-month low)VIX = 21.2 (as high as 25.9)Short-term Trading Call: cautiously bullish CommentaryI have become convinced that 2019 is going to deliver another one of those poor trading … Read more
I saw a flicker of hope for home builders in the May Housing Market Review. Traders decided to snuff that flicker out very quickly afterward. When I wrote June’s housing market review and described a “struggling flicker,” the iShares US Home Construction ETF (ITB) was once again bouncing off the bottom of 2018’s trading range. … Read more
Housing-related stocks continue to show signs of a return of buying interest. I keep tabs on these “housing moves” as checks on the health of the sector. These moves are of particular interest now that investors are actively worrying about a housing slowdown just as the stocks of home builders launch into their seasonally strong … Read more
Pulte Homes (PHM) reported Q3 2018 earnings on October 23rd. The stock responded favorably with a 7.3% one-day gain. That same day, the S&P 500 (SPY) gapped down and sold off for four more trading days. The index now sits at a near 7-month low while PHM is holding an impressive 24.1% total post-earnings gain. … Read more