Category: General Market NewsSort
October Housing Market Down, But Select Counties Show Promise According to IAS360 House Price Index
“We’re continuing to see a decline in housing prices across the country and at the county level. That said, we’re also seeing some signs of strengthening in counties that are located in ground zero states of the housing crisis,” said Dave McCarthy, President and CEO of Integrated Asset Services.
Yesterday, the U.S. Treasury auctioned off $30 Billion worth of one month T-Bills. Demand for the ultra-safe government securities was so high that the yield was bid down to 0%. In other words, investors are essentially giving their money to Uncle Sam to hold for them free of charge. Investors could keep their money under their mattress or buried in a coffee can and achieve the same effect.
Because of the burgeoning global recession, the coming months and years will be very interesting and perilous times. For investors, safe havens such as U.S. Treasury debt, U.S. blue chip stocks and bonds and high-quality municipal debt may do better and for a longer period of time than underlying fundamentals would seem to dictate.
The most likely scenario is that we breakout above 920 SPX within 1-2 days. The other scenario is that the flag fails and we breakdown, starting a perpetual multi-day sell-off which I will gladly participate in. The former holds the highest probability, by far. Tomorrow, expect 905 SPX resistance per the 3-day chart. The 50-day MA remains as the largest point of resistance to a breakout.