ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
When Lennar (LEN) reported earnings on April 4th the market’s reaction looked just like the refresher the market needed to get housing stocks going again. LEN soared 10.0% on the day. The deal looked sealed when LEN appeared to confirm the surge with another up day. LEN has suffered severe selling pressure ever since. Source: … Read more
The Housing Market Index (HMI) for May increased to 70 and is just 4 points off its post-recession high set last December. Just don’t tell investors home builders are as confident as ever despite rising rates. Today, the yield on the 10-year U.S. Treasury bond soared to its highest level in 7 years and settled … Read more
Management for LGI Homes (LGIH) set aside an hour for its Q1 2018 earnings conference call. They only needed 37 minutes, including 23 minutes spent on Q&A. Perhaps they should have used the entire hour. Source: FreeStockCharts.com As the chart above shows, LGIH has had a wild two days following its earnings report. The first … Read more
For the second time in a row, KB Home (KBH) is struggling to benefit from a strong earnings report. In January, investors rushed into the stock post-earnings only to create a massive blow-off top. In March, sellers started fading the stock on the same day of the initial post-earnings pop. Last week, KBH broke down … Read more
The last Housing Market Review covered data reported in February, 2018 for January, 2018. At the time, I connected the dots on the bearish implications of converging technicals and fundamentals. The iShares US Home Construction ETF (ITB) actually managed to hold onto support at its 200-day moving average…until today. So not only is the seasonal … Read more