ONE-TWENTY TWO: Trading Financial Markets
Since the year 2000, delivering a different narrative for students and fans of financial markets: stocks, options, currencies, Bitcoin, and more…
Housing Market Intro and Summary The Spring selling season looked like it started strong for new home sales. The data for April reveal a story evolving differently. Absolute inventories rose for both existing and new homes and yet sales declined. Housing starts also suffered a setback. Median prices of homes soared, especially for new homes, … Read more
Housing Market Intro and Summary Softening housing data pointed to more normalization in the housing market. Normalization is returning housing data to prior trends and in some cases suggesting important plateaus. Home builder stocks powered through the softening data to show strength in sharp rebounds and fresh all-time highs. The arrival of the Spring selling … Read more
Stock Market Commentary Many stocks rebounded sharply from intraday lows on Thursday. The flurry left behind key bullish signals. Buyers did not disappoint on Friday. They delivered strong follow through on the latest bullish signals even as sections of the market suffered targeted carnage. Indeed, the ability to ignore the targeted carnage was itself another … Read more
Just as I was going about to close the books on the seasonal trade in home builders, Lennar (LEN) revived upward momentum across home builders. LEN gained 13.8% after announcing a partnership with Centerbridge to invest in rental single-family housing. News of the “Upward America Venture” lit a fire across the sector. However, the excitement … Read more
Housing Market Intro and Summary In recent months a divergence in the housing market emerged between rangebound home builder stocks and strong housing data. In October, new home sales recorded a third straight month at the 1 million mark. Since new home sales hit an August peak, the stocks of home builders have also largely … Read more
Housing Market Intro and Summary A divergence in the housing market emerged between rangebound home builder stocks and strong housing data. In October, new home sales recorded a third straight month at the 1 million mark. Since new home sales hit the August peak, the stocks of home builders have also largely gone nowhere. A … Read more
Housing Market Intro and Summary A divergence in the housing market is emerging between slowing home builder stocks and strong housing data. The housing boom in the U.S. continued to make its mark in the middle of the pandemic-induced recession. While new home sales took a bit of a pause in October, housing starts, existing … Read more
The Message in Home Builder Sentiment The National Association of Home Builders (NAHB) reported a tremendous surge in the sentiment of home builders. The Housing Market Index (HMI) soared from 37 in May to 58 in June. Just two months after suffering a historic plunge, sentiment among home builders is right back to positive territory. … Read more
It seems every week I need to generate new superlatives to describe the epic collapse in the stock market. For the housing-related stocks, forget animal spirits getting trampled. This time around the walls have all caved in on the sector. Today’s third crash during this sell-off in the stock market featured a complete collapse in … Read more
This week’s market crash and subsequent sharp rebound revealed some key divergences among housing-related stocks. While one more home builder made it to my “do not touch” list, I see even more opportunities. Opportunities iShares Dow Jones US Home Construction Index Fund ETF (ITB) To start the week, the iShares Dow Jones US Home Construction … Read more