What We're Reading

In my typical day I read 20+ articles pertaining to the the stock market and investing.  Only occasionally posting one here which stands out in my mind but one yesterday at Sober Look caught my eye.  It's author begins right off the bat with "The United States is not building enough homes to meet the nation's housing demand." and I almost spit out my tea.  Not building enough homes when you compare the aging ones being thrown out versus the new ones being constructed or are we looking at what a consumer can afford to buy?  He is clearly in the camp that we should crank out more housing which would cause prices to drop at some point and suddenly "Joe the Plumber" will move out of his apartment an into a new home.  I simply don't buy that scenario.

Anyone with even a little information on the market knows that the middle class has been hallowed out (and may continue) and guess what?  Those lost jobs, whether lost to technological advances or shipped overseas, are NOT coming back.  Perio

More Americans who do not currently own a home say they do not think they will buy a home in "the foreseeable future," 41%, vs. 31% two years ago. Non-homeowners' expectations of buying a house in the next year or five years have stayed essentially the same, suggesting little change in the short-term housing market. As a result, what may have been a longer-term goal for many may now not be a goal at all, and this could have an effect on the longer-term housing market.

One of the long-running facets of the "American Dream" has been the ability to buy a house. Yet seven years after the housing market crashed in 2007-2008, it appears that a renewal of zeal for home buying may not yet be evident in the United States. Two years ago, Gallup asked those who did not own a home in the U.S. whether they thought they would buy a house in various time periods in the future. The current Gallup poll shows little movement in Americans' opinions since 2013, except in the sentiment that those who do n

Everyone knows our beloved five year rally seems to be weakening of late.  The big question is just "how" weak will it become.  If anyone tells you they know that answer, stop reading that website.  Certainly more and more sectors are now exhibiting profit taking even as fund managers lounge sipping Mai Tai's from their catamarans off the coast.  Indeed selling can beget more selling, however that doesn't mean we may not see a few days of buying to test overhead resistance and see if it holds; if the "top" is truly in.

Now is not a time (imo) to add to a long position.

Now is a time to be hedged or flat in a long portfolio.

Now is the time for day trades or brief swing trades.

Now is a time to let the charts show you direction.

A second enormous week of earnings lies before us.  While thus far companies are largely beat (which should be the case if they're well run), forward guidance hasn't been all that impressive from a sales growth perspective.

Buybacks and dividend increases