We have a light economic calendar with a sharp focus on housing data. Earnings season has ended, and Congress is out of town. There is plenty of space for journalists to fill in a quiet, mid-summer week. Perhaps the housing data will fill some of that space. We may be overdue for a closer look, asking:
Do changes in the housing market represent an investment opportunity?
In my last installment of WTWA, I asked whether the U.S. might be enjoying an economic sunrise. I took each of the key issues and outlined the key questions for investors.
Others picked up the general topic, but no one is doing this type of specific analysis. That only underscores the importance for thoughtful investors. Sometimes (perhaps often) we are rewarded for looking beyond the obvious.
I always start my personal review of the week by looking at a great chart. This week I am featuring Investing.com’s version, which provides helpful callouts for various news events. My static image shows where they are, but if you go to the site you can enjoy the interactive features.
The market gained another 0.8% on the week with a trading range of only 1.9%. My weekly indicator snapshot monitors the actual volatility as well as the VIX (see below).
The weekly sector chart shows the sources of the action.
The “recovery” trade is now weakening. Industrials, financials, energy and materials are all part of that group. Defensive sectors like utilities, consumer, and health, continue to improve. Materials, consumer discretionary, communication services, and information technology are declining. You can watch the progress of the rotation via this chart. (The sector names are here. The Bloomberg symbols add “S5” at the start of the name).
No WTWA next week – probably.
No inflation? I happened upon this downtown
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