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B4 The Bell, Moonday May 3


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They just realized what a bargain the homebuiders are

Absolutely! Real estate always goes up, so they're always a bargain!

 

Just an efficient market "discounting future expectation of returns." :grin: :angry:

 

 

 

[P.S. This bulletin board system needs a clickable smilie that is blowing chunks.]

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we are seeing short covering order flow. Probably position squaring in front fomc. We are also seeing some intereting flow in the consumer staples (mo, kft, CL) which have had a strong bid for the last few days. MO was up +2% after being up the last few days despite the broad sell-off.

 

This is a classic recession trade. Sell or short financial, retail and cylical stocks and long consumer staples. We saw this same trade put on in front of the 2000 crash, 9-11 slide, and the 02 waterfall. One caveat: it appears early in this trade. This trade usually ends with the momos driving these high div plays up 5% in an exhaustion day. Then a broad market waterfall usually starts in earnest, usually taking the cons staple stocks with it.

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