Tuesday, August 28, 2007
And Going Back Down Again...
It looked like traders took profits Monday after data revealed record inventory in the housing sector. The Dow ended the session with a loss of 56.74 points to close at 13,322.12. The SPX fell 12.58 points Monday to 1,466.79. We have no play on yet so are nowhere.
Existing home sales data came out Monday and it actually came in above expectations at 5.75 million annualized units, roughly the same as in June. However, traders were concerned about the sharp rise in inventory with supply coming in at a record 9.6 million units. New home sales data last Friday showed supply of 7.5 million, also at an elevated level. This raises concerns that the housing sector is still many months away from seeing a bottom and this will put further pressure on home builders.
Overall, Monday was a quiet session with profit taking occurring on very light volumes. Economic news will be the focus this week, especially on Friday when Bernanke speaks. Though volatility has calmed over recent days any negative information relating to the credit markets could easily turn the volatility tap back on!!
Until next time.
Existing home sales data came out Monday and it actually came in above expectations at 5.75 million annualized units, roughly the same as in June. However, traders were concerned about the sharp rise in inventory with supply coming in at a record 9.6 million units. New home sales data last Friday showed supply of 7.5 million, also at an elevated level. This raises concerns that the housing sector is still many months away from seeing a bottom and this will put further pressure on home builders.
Overall, Monday was a quiet session with profit taking occurring on very light volumes. Economic news will be the focus this week, especially on Friday when Bernanke speaks. Though volatility has calmed over recent days any negative information relating to the credit markets could easily turn the volatility tap back on!!
Until next time.
# posted by Paul @ 5:18 AM 
