Fwd: The Stealth Homebuilder Rally Starts Now

---------- Forwarded message ----------
From: Rude Awakening <rude@agorafinancial.com>
Date: Tue, Jun 24, 2014 at 6:59 AM
Subject: The Stealth Homebuilder Rally Starts Now
To: iammejtm@gmail.com

The housing market was the sector that took the biggest hit of all during the brutal winter months... June 24, 2014     The Stealth Homebuilder Rally Starts Now   Housing says goodbye to the winter blues Sparking a stealth rally Plus: What's the deal with prices?   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner The unusually cold and snowy winter much of the country experienced just a few months ago quickly became the go-to excuse for businesses that couldn't hit their respective sales numbers. No one bought any cars in February? Blame the cold. T-shirt sales slumping? It's all that damn snow. Heck, even weeks after the last flake melted, CEOs grumbled about the weather every time an analyst asked a pointed question about slow sales. However, the housing market was the sector that took the biggest hit of all during the brutal winter months. And the sharp slowdown in construction had plenty of folks wondering whether the building slowdown would recover once the weather improved. Well, now we finally have an answer... "Americans snapped up previously owned homes in May in the biggest monthly sales gain in almost three years," Bloomberg reports, "a sign the residential real estate market is regaining its footing after a stumble early in the year." Home purchases jumped by almost 5% to a 4.89 million annualized rate-- the biggest increase since August 2011. This unexpected pickup in the housing market is helping to confirm the "stealth rally" we've been following since late last year. Remember, everyone has been worried that rising interest rates will squash the housing market. So when new home sales slumped 7% in late 2013, analysts were quick to blame rates as the culprit. Everyone thought rates had to move higher. But here we are. Rates drifted lower again and the housing market looks strong... These negative headlines are helping to set up our stealth rally. It's important to note that the iShares Dow Jones US Home Construction ETF (NYSE:ITB) and the retail-heavy SPDR Homebuilders Index ETF (NYSE:XHB) underperformed the S&P in 2013, while home prices actually increased 10.9%. That marked their biggest annual increase since the bursting of the housing bubble--and homebuilders spent the year consolidating instead of ripping higher. Now, we have a situation where the major holdings in both ITB and XHB are looking downright cheap compared to the S&P. Earnings for individual builders also look strong. I like housing here and as a potential buy-the-dips play--even if the broad market dips this summer. Today in the PRO, I reveal my favorite way to play the trend...         BOMBSHELL: 50 years after the death of President Kennedy... Fifty years ago, President John F. Kennedy fought for a "secret currency." One that could have changed everything if it weren't for his untimely death. Now 50 years later, it's making a shocking comeback. It's spreading to every single state in America. And once again, it has the power to change your life, your finances and your retirement. Click here for the full story.           Rude Numbers Targets, Predictions and Wild Guesses   $5 billion may be just enough money for Oracle to buy out Micros Systems Inc. If the deal goes through, it will be Oracle's largest acquisition in four years... 300,000 servers are still vulnerable to the Heartbleed security bug, according to Techspot. So much for a "quick fix"... 6 straight days of gains for the S&P 500 finally came to an end Monday. The S&P broke its winning streak after posting a loss of less than 1 point on the day... $1,325 is where you'll find gold futures this morning. The yellow metal is edging toward its April highs, posting early morning gains of about $7... $106.23 buys a barrel of crude this morning. Oil is holding steady--just $1 off its recent highs...     Rude Trends When to Buy... When to Sell   This just in... The 20-city S&P Case-Shiller home price index was released moments ago. It jumped 0.19% in April, beating expectations of an 0.8% rise. But according to Bespoke Investment Group, the month-over-month price increase in April was the smallest monthly increase since February 2012. Home prices are not rising as fast as analysts expected this year. Year-over-year, home prices rose about 10.8%, below expectations of 11.5%. That's not necessarily a bad thing. Keeping prices grounded helps homes stay affordable. That's good for builders in the short-term. [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   URGENT: "Don't invest a single dollar until you read this..." Truly "IRS-Proof" Income, Made Easy Is The White House Terrified of the "Secret $200 Retirement Blueprint?"     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. If you are you having trouble receiving your Rude Awakening subscription, you can ensure its arrival in your mailbox by whitelisting The Rude Awakening. © 2014 Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202. 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Jeremy Tobias Matthews