logo
  Join        Login             Stock Quote

Housing Data Remains Strong

 February 26, 2013 01:25 PM


The markets opened higher this morning on the heels of some solid economic data and also an attempt to bounce from yesterday's late day selloff.

The December Case-Shiller Home Price Index rose 6.8%, on top of last month's 5.5% gain.  Additionally, new home sales for January rose to 437,000 from December's pace of 378,000.  This data has helped boost homebuilding stocks in early trading.

Separately, the latest consumer confidence reading for February rose to 69.6, well above estimates and above last month's reading of 58.6.

But the spotlight today will be on Fed Chairman Bernanke who is appearing before the Senate as part of the Humphrey-Hawkins testimony.  He will likely reiterate the Fed's stance to remain accomodative until economic conditions warrant easing back on asset purchases and raising interest rates.

[Related -Initial Jobless Claims Rose Unexpectedly]

Europe's markets are lower for a second day after Italian elections remain uncertain and worry investors about the fate of recent economic reforms in Italy.  Italy's stock market is down -4% today, and weighing on Europe at large.

Asian markets were down across the board overnight on the heels of a big down day in the US as well as continued reports out of China suggesting that they are looking to tighten property measures.

The dollar is flattish today and commodities are mixed.  Gold prices are bouncing above the $1600 level to $1611, while oil prices are weak again down near $92.50.  Copper and silver prices are higher. 

The 10-year yield is fading further back down to 1.85%.

And the volatility index is down 5% to 18.0 after spiking a whopping 35% yesterday, it biggest move since August 2011.  In our experience, big spikes in the VIX like yesterday don't usually market the end of higher volatility.  So we are managing risk appropriately.

[Related -All Quiet on the Record High Front]

Trading comment: This morning's bounce was fairly weak and is already beginning to lose steam.  Yesterday's selloff came on high volume, and the number of distribution days (high volume selling) in the market has grown recently.  We think this pullback has more work to do, partly in terms of testing lower levels on the indexes but also in terms of time.  Most selloffs take somewhere in the neighborhood of 4-6 weeks to run their course.  So in that sense we are still in the early phases of this current correction.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.