H/t reader M.G.:
“The US is really in trouble. Terrible home sales numbers came in, and the market hardly responded. That tells me two things, first, the market is totally rigged, as we all know. Second, it also means the few real investors left (recognize 85% of all transactions are high frequency skim and sell) are betting short……..betting the market will sink.
People are waking up and asking for their money. This is murdering the money changers, and the stock market reflects the US GDP which 78% of it is in the false financial markets which are full of cooked books and lying spreadsheets. The world market is imploding, the printing party is over.”
– Traders shocked that home sales didn’t slam stocks (CNBC, April 23, 2014):
Sales of new single-family homes surprisingly slid to an eight-month low in March, falling 14.5 percent to a seasonally adjusted 384,000, when economists polled by Reuters had expected to see a reading of 450,000. And although the S&P 500 dipped slightly on the 10 a.m. ET report, many traders were confused about why stocks weren’t hurt more.
“I am surprised that the market wasn’t hurt by that awful home sales number,” wrote Jim Iuorio of TJM Institutional Services. “It has to be that the market needs a couple more numbers to erase the positive vibe, or that the Yellen ‘put’ is still in play. Either way, it is strange.”
– New Home Sales Collapse To 8 Month Lows (ZeroHedge, April 23, 2014):
New Home Sales collapsed 14.5% month-over-month to its lowest since July 2013. A mere 384k versus 450k expectations is the biggest miss since July. So much for the Spring buying season… This is a 7 standard deviation miss against the smart economists’ estimates! Whocouldanode that when the free-money sponsored fast money leaves the game that real people with real debt and real wages are simply priced out of buying a new home? Supply of unsold new homes jumps to 6 months, its highest since Oct 2011 (as once again the visible hand’s interference has produced yet another mal-investment boom as the ‘if we build it, they will come’ builders face an ugly reality).
The Economists nailed it… (Deutsche’s Joe Lavorgna was above consensus at 460k)