ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Housing Market Intro and Summary The October housing data showed some further softening, including a revision of the new home sales data that erased a breakout. Yet, November was a blockbuster month for launching the seasonal strength in the stocks of home builders. Many of these stocks hit all-time highs in a race ahead of … Read more
Housing Market Intro and Summary I thought the advantage of new home sales over existing homes was coming to an end soon. The data suggest otherwise. New home sales surged to an 18-month high while existing home sales fell to a 12-year low. The resilience continues for new homes and most builders. The stock market … Read more
The bear market intrusion to the oversold period gave way to an explosion of bullish trading action this week. The maximum drawdown of October for the S&P 500 (SPY) was 4.0% well above the average for the month. This extreme move provided the perfect setup for the sharpness of the current oversold bounce. The rubber … Read more
Housing Market Intro and Summary The window for new home sales stealing share from existing home sales may be grinding to an end. Another plunge in sentiment for home builders combined with mortgage rates trending fast and furiously upward toward 8% are exerting more and more friction on the entire housing market. The stocks of … Read more
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