Stocks punched higher Tuesday to extend their streak of gains after sales of existing homes fell less than expected.
The stock rally rolls on, but do not be deceived by the reasons why. Housing starts, while bouncing from depressed levels in 2009, are beginning to roll over. Also, the months supply of new one-family houses for sale, or the ratio of houses for sale to houses sold is rising again. Headlines suggesting unexpected strength mean little in the face of these trends. In other words, something other than better than expected home sales is pushing the market higher. The rally in equities was setup long ago by leverage money.
Housing Starts And Change YOY:
Months Supply And Change YOY:
Source: finance.yahoo.com
0 comments:
Post a Comment