Mortgae Applications At A 14 Year low

Mortgage applications for purchase have dropped to a 14 year low. Today's data highlights the battle going on in my mind. On the one hand the economy is deteriorating and it is difficult to be bullish with that type of backdrop. On the other hand sentiment is quite negative while the market is rising, which has bullish implications.

1 comment:

Onlooker said...

I'm right there with you. I can't get long with the storm clouds brewing overhead, but I can't be on the same side of the trade as the RYDEX traders, et al.

This market is shizophrenic and will whiplash you, as it did yesterday with the strong surge on very good breadth numbers after the terrible breadth showing on Monday, which should have portended a break. Were it not for the bearishness you've referred to I would probably have taken a short position late Monday.