The stock market is moving higher on good news- imagine that! New homes sales came in above consensus at annualized rate of 433,000 from an upwardly adjusted 407,000 in the previous month. Inventories are also improving, which is actually great news. I continue to think this sector will heat up from its slow and mundane rebound that mostly mirrors the lackluster post-recession recovery. There's even a chance over the next year that we get a hockey stick move. It's amazing we are 1,000,000 homes below the level during the peak in 2005.
I especially like the reversal in NASDAQ, but still think we should hold current positions and some cash, instead of adding a new idea. Make sure you check out the Portfolio Approach report each evening to make sure your portfolio is balanced and on the same page.
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Have a great Memorial Day and remember Freedom is not free.