Housing-Sector Blues

Plans to buy a home in the next six months have fallen to their lowest level in more than two years, according to a Zillow report published Tuesday. There were other worrisome signs in residential real estate. For one, sales of existing homes have fallen to the slowest pace since September; and for two, new homes are selling at the lowest level since October 2017.  Read the whole story here. Will Wall Street continue to shrug off the darkening picture in housing? Probably yes, provided enough investors are worried about  it. If you’re looking for a better reason to be bullish, imagine how the stock market would react to news of a thaw between the U.S. and China over tariffs. If it happens and shares surge, shorting into the rally would be a bear’s dream come true, as far as we’re concerned. Will we be so lucky, or will stocks collapse without warning from current levels? We may be about to find out.