RE - Real Estate Double Top Before FOMC
Updated
Idea for Real Estate:
- Real Estate testing a double top after some exhaustion Sept-Oct.
- MBB's rolling over, rejected at -1 Std Dev:
- Because every other market component is already at +2/-2 Std Dev, and Real Estate is relatively less volatile than say S&P 500, I think the +1/-1 Std Dev is a good signal.
- We will have more confirmation next week depending on Fed's decision to taper MBS purchases. I think the Fed will stick to their signaled schedule in hopes of avoiding any sort of a "tantrum".
- Historically, RE and MBS's lead declines in equities.
- We have seen both commodity prices, Building Permits and pending Home Sales come down, so a decline is natural:
- Overseas property market declining is likely to have headwinds as well:
GLHF
- DPT
- Real Estate testing a double top after some exhaustion Sept-Oct.
- MBB's rolling over, rejected at -1 Std Dev:
- Because every other market component is already at +2/-2 Std Dev, and Real Estate is relatively less volatile than say S&P 500, I think the +1/-1 Std Dev is a good signal.
- We will have more confirmation next week depending on Fed's decision to taper MBS purchases. I think the Fed will stick to their signaled schedule in hopes of avoiding any sort of a "tantrum".
- Historically, RE and MBS's lead declines in equities.
- We have seen both commodity prices, Building Permits and pending Home Sales come down, so a decline is natural:
- Overseas property market declining is likely to have headwinds as well:
GLHF
- DPT
Note
2/3 of the 7000 homes that Zillow Group bought are underwater, causing it to lay off 25% of its workers:Real estate crisis getting closer to home
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.