Mid-morning update:
We had a nice morning drop but some traders stepped in at NQ 50% last week and 10 day exponential (1794/1796). HGX (housing index) needs to hold 226 at the close, but I noticed that copper (HG) held a bid all morning, which is normally a bullish divergence. You don't buy copper if you think housing is dead. My guess is that today's news, although really bad, was partially discounted and funds are sticking to the regular homes sales numbers of last week, which shows inventory clearance. Don't forget that new home sales is a lagging indicator in a housing recovery. I am not that bullish, but I am pointing out to traders what is going on out there so that you may not get stuck in a bias.
If copper turns red and NQ loses 1795, then bulls really lose it. Until then, trade the range.
This bit of news just came in and it is really scary. Bulls have a tough job ahead:
March 26 (Bloomberg) -- U.S. foreclosure filings last month jumped 12 percent compared with a year ago as homeowners struggled with declining home values and higher adjustable mortgage rates.
More than 130,000 homes entered foreclosure last month, according to a report from RealtyTrac, an online listing of foreclosed properties. That's the second-highest since RealtyTrac began collecting data in January 2005.
We had a nice morning drop but some traders stepped in at NQ 50% last week and 10 day exponential (1794/1796). HGX (housing index) needs to hold 226 at the close, but I noticed that copper (HG) held a bid all morning, which is normally a bullish divergence. You don't buy copper if you think housing is dead. My guess is that today's news, although really bad, was partially discounted and funds are sticking to the regular homes sales numbers of last week, which shows inventory clearance. Don't forget that new home sales is a lagging indicator in a housing recovery. I am not that bullish, but I am pointing out to traders what is going on out there so that you may not get stuck in a bias.
If copper turns red and NQ loses 1795, then bulls really lose it. Until then, trade the range.
This bit of news just came in and it is really scary. Bulls have a tough job ahead:
March 26 (Bloomberg) -- U.S. foreclosure filings last month jumped 12 percent compared with a year ago as homeowners struggled with declining home values and higher adjustable mortgage rates.
More than 130,000 homes entered foreclosure last month, according to a report from RealtyTrac, an online listing of foreclosed properties. That's the second-highest since RealtyTrac began collecting data in January 2005.
This entry was posted
on Monday, March 26, 2007 at 3/26/2007 11:55:00 AM.
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