by Larry Levin
Tuesday was a carbon copy of Monday. It was so slow; I’m going to send the same note with an exception of the FHFA data.
Monday (Tuesday) was an incredibly slow day. (“How slow was it?” is yelled from the crowd) Well, it was so slow it looked like the market was going backwards. It was so slow, pork belly traders were poking fun at the S&P. It was so slow, if the stock market was a car on the freeway, even “Miss Daisy” would be behind it cursing. Is my microphone on? It was so slow that the CME played the “Chariots of Fire” theme song all day in the pit. I got a million of them. Hey, tip your waiters and waitresses on the way out.
Almost ALL of the day’s gains were made before the open. When the day session began it was surprisingly sluggish for the first ten minutes, considering the sizeable gap that preceded it. The second 10-minutes of the day saw a 3.00 point range extension and that was it for the day. Almost the entire day’s range traded within an amazingly narrow range of just 4.00 points. Because of this, we would expect a rather active day Tuesday.
The only economic data point today was FHFA price data and it followed recent housing data: it was horrible. Last month’s FHFA data was revised from -0.3% to -1.0%. Shortly after the release Bloomberg said this “Home prices continue under downward pressure from excess supply and distressed home sales. The FHFA purchase only house price index slipped 0.3 percent in January, following a revised decline of 1.0 percent in December (originally down 0.3 percent).
On a year-on-year basis, the FHFA HPI is down 3.9 percent, compared to down 4.1 percent in December.”
Tuesday was a carbon copy of Monday. It was so slow; I’m going to send the same note with an exception of the FHFA data.
Monday (Tuesday) was an incredibly slow day. (“How slow was it?” is yelled from the crowd) Well, it was so slow it looked like the market was going backwards. It was so slow, pork belly traders were poking fun at the S&P. It was so slow, if the stock market was a car on the freeway, even “Miss Daisy” would be behind it cursing. Is my microphone on? It was so slow that the CME played the “Chariots of Fire” theme song all day in the pit. I got a million of them. Hey, tip your waiters and waitresses on the way out.
Almost ALL of the day’s gains were made before the open. When the day session began it was surprisingly sluggish for the first ten minutes, considering the sizeable gap that preceded it. The second 10-minutes of the day saw a 3.00 point range extension and that was it for the day. Almost the entire day’s range traded within an amazingly narrow range of just 4.00 points. Because of this, we would expect a rather active day Tuesday.
The only economic data point today was FHFA price data and it followed recent housing data: it was horrible. Last month’s FHFA data was revised from -0.3% to -1.0%. Shortly after the release Bloomberg said this “Home prices continue under downward pressure from excess supply and distressed home sales. The FHFA purchase only house price index slipped 0.3 percent in January, following a revised decline of 1.0 percent in December (originally down 0.3 percent).
On a year-on-year basis, the FHFA HPI is down 3.9 percent, compared to down 4.1 percent in December.”
But no matter, the collapsing housing sector of the US economy is so 2009 & 2010 that it no longer matters. Oh sure, people are still losing their homes and cannot find gainful employment but since that has been discussed at length, it no longer matters.
Trade Date: 3/22/11
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