New Home Sales

Let's not forget that home sales soared right before the first tax credit expired and dropped quickly thereafter. I would not make too much of today's number. The number that will be more telling is the May new home sales number (comes out in June). That will give a better read of the underlying demand.

6 comments:

PJ said...

Yes ... and this summer we'll see real pressure on new home sales, because foreclosures will be coming to market in abundance. There will be new lows in new home sales.

Buy the homebuilders!

Anonymous said...

Market is very quiet today, not sure whether its waiting go up until 1270...very scary to be short on this market...

Random Thoughts said...

tell me about it

Anonymous said...

Ya;ll wanna follow da Ol Dawg don't forget all my trades are on twitter.com/skang357.

Anonymous said...

I am new to options but would like opinions on this play.

PALM

Long May 10 5 Calls .58
Sell May 10 6 Calls .28
Sell May 10 4 Puts .17

Net -.13

Do you consider this a good trade?

Tsachy Mishal said...

Seems like a reasonable way to try and play some upside as long as you are confident they are not heading into bankruptcy any time soon.

At this point it looks like the two options are bankruptcy or a buyout because it looks like they are going to burn through their cash. I dont have a strong opinion.