Existing Home Sales Plunged 2.6% --> Short? --> NO!
5 min Emini Nasdaq 100
Hi,
Yesterday new home sales numbers jumped 16.2% today, existing home sales numbers plunged by 2.6%. The former news is good and the latter news is bad.. Which to believe? Neither..
If you remembered, yesterday saw a 1% decline in most indices despite the good news.. And today, the market just kept on ranging and consolidating... the bad news is suppose to cause a further breakdown... But, did that happen? NO! In fact there was a slight uptrend bias in the overall trend today..
Notice how the Short-term MACD stayed close to the zero line and that price action is dirty... As I was watching the market depth and how the prices jumped, I realized that market was extremely volatile.. it's easy to get killed in such a market. you can be whipsawed out of your position ten times over..
Best decision --> Stay OUT!
Fundamentals:
Sales of existing homes fell a larger-than-expected 2.6% in April from March while the median price of a home sold fell for a ninth straight month.
Troubles in the subprime mortgage market acted as a further drag on housing.
The National Association of Realtors reported Friday that sales of existing homes fell last month to a seasonally adjusted annual rate of 5.99 million units. That was down 10.7% from a year ago and the slowest sales pace since June 2003.
The median price of a home fell to $220,900, an 0.8% fall from a year ago. It marked the ninth straight decline in the median price.