Existing Homes Sales fall greater than expected --> Spike Down --> down trend day --> $1520 profits
5 minutes Emini Nasdaq 100 Candlesticks
Hi,
After a strong rally yesterday, prices falls again today.. the key? Yes, market is still sensitive to the housing bubble bursting... existing home sales fell to 6.48 million units for all of 2006... supposedly the largest fall in 17 years... The market reacted hugely to this...
I wasn't doing much before 10:00am.. just watching the normal gyrations... it gapped up, closed the gap and appeared to be going higher, until existing home sales figures came out at 10:00am... Price falls a bit,, but it's not enough conviction for me to go short... finally at 10:15... price fell below yesterday's close which is also yesterday's high... I immediately shorted 1 contract at 1813.... market is volatile,,, i still couldn't tell whether price is going to trend downwards all day....
But, at 12:00, after price breaks the moving averages, and there is no sign of rebouncing... I shorted another 2 contracts at 1804.... now the market seems bearish and bent on going further down... At 13:35, I shorted another 2 contracts at 1800... as price falls below 1800 strongly....
At 15:00, price momentum seems to be slowing down and I covered all my shorts at 1789, with a profit of $1520.
Existing Home Sales:
After a five-year boom, the nation’s housing market cooled considerably in 2006 with existing home sales falling by the largest amount in 17 years.
While the worst may be over, the rebound could be slow in coming, analysts said, given a continuing huge backlog of unsold homes that will keep downward pressure on prices, particularly in former boom areas.
The National Association of Realtors reported Thursday that sales of existing homes totaled 6.48 million units for all of 2006, down 8.4 percent from 2005 when 7.08 million existing homes were sold, the fifth straight year that sales hit an all-time high.