Don't Ask Why Sightings

I just love this blog post. It goes through all this earnest analysis and concludes, "Until the level of inventory declines significantly, housing prices will continue to decline and the outlook for new residential investment will remain grim."

Ah yes, the housing crisis. Now, if the market was writing a headline it would be something like "Homebuilders are one of the best performing sectors of the 2008, up nearly 8% in a down market."

Which of these assessments is more important to an investor or trader that wants to be on the right side of the of a position? I personally go with what the market wants to tell me. Lets see, at last check XHB is up 4% today, comfortably above its 50 day moving average.