New Home sales: Slightly better than expected, Market still went up --> $540
5 minutes Chart Emini Nasdaq 100
New Homes Sales data were released today and it went up compared to february but at 10:00 am, there was a dip in price but it immediately rebounded from the moving averages but I did not enter the market then...
The fundamentals will tell you that there is positive news with increased new home sales, so we are suppose to be bullish and go long. But we as day traders know better than to rely on such data... We want to go long because the long term trend is still up and we will only enter if there is a clear signal for us to do so.
At 11:45 am. price broke above the resistance line formed by the morning session, I immediately entered 1 contract at 1859. It went smooth, price went up and stalled again, providing an opportunity for me to load the boat, I longed another 2 contracts at 1860. After that, I just ride the wave, letting the profits run until 15:15 when a 2 consecutive red candles appeared and stochastics also downturned... => profits of $540
Fundamentals
New home sales rebounded a bit in March from depressed levels in February but still fell short of forecasts, according to the government's latest report, signaling ongoing weakness for the battered real estate market.
New homes sold at an annual pace of 858,000 homes in March, up from the 836,000 pace in February, which was revised lower.
The March reading was down 23 percent from March 2006 and was the second weakest sales pace in the Census Bureau report since September 2001, behind only the February reading.
Economists surveyed by Briefing.com had forecast that sales would come back to an annual rate of 890,000 in March.
Mike Larson, a real estate analyst at Weiss Research, said that he believes weather helped to inflate the sales numbers slightly in Wednesday's report.
"New home sales reportedly exploded by 50% in the Northeast region between February and March. In less weather-sensitive regions, sales were down slightly; down 2.7 percent in the South and off 0.9 percent in the West."