Nov 13. More bad real estate news

Nov 13. Once again the dollar is trying to bounce from oversold levels, which hurt stocks and gold.  Gold had a key reversal; made a new contract high, but had an outside day and closed lower.  SPZ again rejected the 1100 level, profit taking there as well.  Job Claims were *only* 502k, but interest rates barely reacted, with tens now at 3.446%.
–Mortgage purchase applications plunged to worst level in nearly 9 years as buyers waited to see if tax credit would be extended…just another reflection of how dependent the economy has become on govt aid.  Another BBG story about real estate: “U.S. foreclosure filings surpassed 300,000 for an eighth straight month as unemployment made it tougher for homeowners to pay their bills, RealtyTrac Inc. said.” Over 332k from October alone!   And, from the WSJ: “A key measure of the Federal Housing Administration’s cash reserves has dropped sharply to well below the congressionally mandated level.”
–Today’s news includes Trade, expected -32.5B and Consumer Sentiment expected 71.0 from 70.6.  From FT: “Walmart says confidence remains low” (customers are concerned about their finances and unemployment). I’d bet Walmart has a better handle on the mood of shoppers than the Michigan survey.

Posted on November 12, 2009 at 6:43 pm by alexmanzara · Permalink
In: Eurodollar Options

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