Today new homes sales for December were released and they were terrible. You would think that would be bad news for homebuilders. Not so. XHB was up 1.5% as of the time I write this, on the news. While I don't have the exact numbers, it sure seems like everytime bad news about housing is released XHB goes up. Don't ask why, but XHB is establishing a solid uptrend. My long term trend number just moved to positive from neutral. The short term trend numbers are looking maxxed out, so don't be surprised by a pull back. If that is the case, the next leg up would be one to watch for.
I like to debunk the pundits and talking heads who have to come up with some explanation as to why the market is doing what it is doing, even when they have no clue whatsoever. Please share your favorite examples of Don't Ask Why.
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