Daily Market Update – May 25, 2016 (7:30 AM)
No one expected yesterday;s New Home Sales surprise to the upside.
Neither did anyone expect that the New Home Sales Report would have much significance, as it has mostly been a yawner for the past few years.
In addition to some really strong numbers, with an increase of about 20% over expectations, the avarage price for a new home was significantly higher and was more in the range of the higher end home builders.
That’s either good or bad, depending on your perspective.
If you’re Bernie Sanders, it may be reflective of the skew in society, in that the increase didn’t represent first time home buyers joining in on the “American Dream,” but rather it was those already living the dream who were moving forward and leaving others further and further behind.
Others see it as good news and showing more consumer participation in the economy which will filter down to things like home furnishings, appliances and all of those other things that are part and parcel of owning a new home.
This morning the futures are cautiously higher following that large gain yesterday and there is some more good earnings news from after the close yesterday to perhaps support some of those gains.
I’m just happy to have actually made a trade and even rolling it over in order to capture the dividend.
With that done, there may not be much else to do for the rest of the week, although I’ll be on the lookout for any trading opportunities, especially if it means getting some income out of non-performing positions.
With next week being a shortened trading week there may not be too much to do then either, but at least next week has a couple of expiring positions and a decent number of ex-dividend positions that will generate some income to make it worth getting out of bed while we await what the FOMC will do and keep watching the price of oil move higher into the summer.