Housing Again

by Larry Levin

There wasn't a great deal of news today other than the FHFA report. Was it a surprise you're wondering? No. It was much worse than expected - yet again.

From the government report we read...

WASHINGTON, DC – U.S. house prices fell 0.5 percent on a seasonally adjusted basis
from June to July, according to the Federal Housing Finance Agency’s monthly House
Price Index. The previously reported 0.3 percent decline in June was revised to a 1.2
percent decline. The unusually large revision mainly reflects the addition of new data from
late June that show considerably weaker prices than earlier in the month. For the 12
months ending in July, U.S. prices fell 3.3 percent. The U.S. index is 13.8 percent below
its April 2007 peak.

Yes, you read that right; it was almost twice as bad as expected, while the prior month's poor reading was revised FOUR TIMES WORSE than originally reported. Hmm, isn't it interesting how prior month's data is rarely revised to a better reading? I wonder why? Perhaps a "Ministry of Truth" Czar just can't bear to tell, umm, the truth the first time around.

When the data was released the market went straight up. What else would it do, right? However, shortly thereafter the market made new lows, then proceeded to trade sideways for the next five hours.



Previous Day's Trading Room Results:

Trade Date: 9/22/10

E-Mini S&P Trades*
(before fees and commissions):


1) VA sell @ 9:11am at 1134.50 = -1.25 (1)

2) Algorithm positions (4)

3) “Reading the Tape” positions (1) combined Secret’s, Algo, & “Reading the Tape” total… -2.50



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