Sunday, April 18, 2010

Signs of life in zombie housing market?

Economic data has been so upbeat in the last few days that economists are pondering an almost-unthinkable question: Could there even be signs of life in the zombie housing sector?

In this business anything is possibly over the short-term. However, almost all spin/MOPE fades without the support of money.

Money continues to fade or bet against a housing market. As the price of lumber has risen, commercial traders have aggressively shorted it across multiple time frames. Such actions could be interpreted as supply/demand related activities, but it's persistence over time weakens that interpretation .

COT Money Flow Lower Table:


Lumber Futures Continuous Contract and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:


Source: marketwatch.com

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