8 replies to this topic

[OEXCHAOS]

It's probably going to be taken negatively by the nervous-nellies but longer-term it's great as it gives the Fed an excuse to cut. WASHINGTON (MarketWatch) -- Existing home sales fell 2.6% in April to 5.99 million units on a seasonally adjusted annual basis, the slowest sales pace in four years, the National Association of Realtors said. The fall in April sales was larger than expected. Economists had forecast that sales would dip a slight 0.2% to 6.11 million units. On a year-on-year basis, existing home sales were down 10.7%. The median national sales price was down 0.8% year on year to $220,900 in April. Inventories of unsold homes rose 10.4% to 4.20 million, a 8.4 month supply, the highest in 15 years.

[relax]

I am sure the Fed will fix the data so that they "can" not cut rates

June 14/15 - CPI and PPI should come in too high, providing them with an "excuse" not to cut rates

because next week's GDP will certainly provide them with an excuse to cut

It's probably going to be taken negatively by the nervous-nellies but longer-term it's great as it gives the Fed an excuse to cut.

WASHINGTON (MarketWatch) -- Existing home sales fell 2.6% in April to 5.99 million units on a seasonally adjusted annual basis, the slowest sales pace in four years, the National Association of Realtors said. The fall in April sales was larger than expected. Economists had forecast that sales would dip a slight 0.2% to 6.11 million units. On a year-on-year basis, existing home sales were down 10.7%. The median national sales price was down 0.8% year on year to $220,900 in April. Inventories of unsold homes rose 10.4% to 4.20 million, a 8.4 month supply, the highest in 15 years.

[greenie]

It's probably going to be taken negatively by the nervous-nellies but longer-term it's great as it gives the Fed an excuse to cut.

and did you say you have a degree in economics from univ. of Chicago??? or was it Phoenix???

[OEXCHAOS]

That would be Northwestern. I studied economic history under Jon Hughs (The Vital Few, et al.) and Joel Mokyr (Why Ireland Starved, et al.). You don't need to be as smart as I am to come to similar conclusions. You could look at the relationship between so-called bad news and stock prices. Or you could look at a chart of the broad market over the past year or so of bad news and draw some conclusions from that. Seriously, start getting bearish when all the news is great. M

[Rogerdodger]

42 foreclosures last week here in Tulsa. 35 this week. I'm looking at buying one. It has acouple of old cars in the back yard. I'm hoping there may be some gas in the tanks. That may cover the downpayment.

[Data]

Market rallied on strong new home sales. Market rallied on weak existing home sales. Something else is in play. Besides, the market gapped up well before the news and the spin on the news was publicized.

[OEXCHAOS]

Well, it's hard to separate news related buying from a Bull market. I'm actually kind of surprised that they didn't take it down on the news, but so it goes. The 21-day buyers trump the nervous nellies. BTW, I'm NOT calling Bears nervous nellies. I'm referring to those suffering from buyers' fatigue and who are getting shaken out of long-term longs too soon. And yes, I know what it feels like. Mark

[Jnavin]

Today Wall Street Journal has an op-ed article that says the Fed's rate cuts or raises are irrelevant these days. Highly recommended reading.

[thespookyone]

The action in bonds is saying rate raise, not cut to me, and my bet is we easily see a raise first.