USA Considerations (Buy, Buy Watch, Sell Watch, Sell)
Currently, 73.6% of stocks are within their normal trading range and considered a Hold. This is 4.5 points lower than this time last month. The distribution has become flatter. Most of the movement was predominately to the Sell and Sell Watch side (2.9 points) to 18.3% up from 15.4%. Buy and Buy Watch side also gained 1.6 points. The curve has moved by 1.3 points to the Sell, Sell Watch side of the distribution. We have returned to a higher relative Fv position in large cap stocks at 108.4% while mid cap moved into cautionary territory at 121.1%. Small cap remains between the two at 114.6% and has turned positive year-to-date
USA Stock Consideration Change Report
Numerous changes today, not as quite as earlier this week.
Update Economic USA Housing
Housing sales of previously owned houses fell 2.3% in April to 5.57 million units, but this should not be such a surprise since the previous month reached a 10 year high. Gains over the past 12 months might be more indicative of the continuing improvement in housing with a gain of 1.6%. There is an increasing shortage of houses reflected in the most recent supply level at 4.2 months; a normal market is 6 months. The shortage is pushing median prices up and they have now reached $244,800. Given the longer trend to the upside we believe housing is still improving.
USA Stock Consideration Change Report
Everyone was well behaved today – No Consideration Changes!
Update Economic USA Consumer Credit
Consumer debt is increasing; that is a fact. However, it has been increasing since 1980 except for a few brief periods. In the early 1990’s there was a period of zero and slight negative growth and then again in 2008 as the mortgage crisis set in. Otherwise, expansion has been the norm. Certainly, the current rate of expansion is higher than most previous time periods which leads to the question of whether or not the consumer can afford the credit outstanding? Is the consumer overextended, or is credit increasing as a result of increased income or confidence?