Thursday, February 20, 2014

Markets rise on leading economic indicators

Dow jumped 92, advancers over decliners 2-1 & NAZ climbed 29.  The MLP index lost 2+ to 460 (down about 10 from setting a new record high) while the REIT index was off fractionally in the 282s.  Junk bond funds inched higher & Treasuries were mixed to lower.  Oil slipped from a 4 month high as the Energy Information Administration said US inventories climbed.  Gold closed lower for a 2nd straight session, pressured by weak Chinese manufacturing data as well as a strength in the US dollar.

AMJ (Alerian MLP Index tracking fund)

stock chart

Treasury yields:

U.S. 3-month


U.S. 2-year


U.S. 10-year


CLH14.NYM...Crude Oil Mar 14....102.96 Down ....0.35  (0.3%)

Live 24 hours gold chart [Kitco Inc.]

Home Values

Employees Work in a Factory in Hamburg

The rate of new foreclosures in the US dropped to the lowest level in 8 years as rising property prices erased negative equity & allowed more delinquent homeowners to sell without losing money.  The share of loans on which foreclosure actions were started declined in Q4 to 0.54% from 0.7% a year earlier, the Mortgage Bankers Association said.  The rate was the lowest since Q3-2006, when home prices were just starting to fall in what would become the worst crash in decades.  The foreclosure crisis is fading for much of the country as the economy improves & Americans negotiate with banks for modifications or approval to sell for less than what’s owed.  Home prices rose 11% in Dec from a year earlier, the 22nd straight increase, CoreLogic reported.  “Foreclosures are back to the typical historic range,” said Michael Fratantoni, chief economist for the Mortgage Bankers Association, said.  “The vast majority of loans that remain to be worked out are very old at this point.”  About 75% of seriously delinquent loans in Q4 originated in 2007 or earlier.  The rate of foreclosure starts peaked in 2009 at 1.42%.  Since then, low mortgage rates & tight inventories have helped provide a foundation for the housing recovery.  The mortgage-delinquency rate fell to 6.39% in Q4 from 7.09 % a year earlier.  The percentage of loans in the foreclosure process dropped to 2.86% from 3.74% a year earlier.  Both figures were the lowest since 2008.

Foreclosure Starts Fall to Pre-Crisis Levels as Home Prices Rise

The Ukraine situation is getting very ugly & the EU slapped sanctions on the country.  Venezuela is dealing with protests.  The euro & Chinese economies are fragile to some degree.  Then there is the US.  By comparison, this economy looks fairly healthy after the slowest growth from a recession (in a very long time).  But the leading indicator data was drab, measuring what is lagging data.  Stocks didn't mind.  Even the high yielding sectors have been doing well this year.  But new information is coming shortly & that may not be appreciated.

Dow Jones Industrials

stock chart

I’m a huge fan of INO & from what I have seen so far, their service Marketclub!  This isn’t a stripped down version, everything in MarketClub is available to you.  I don’t want to give everything away, but you’ll have unlimited access to my favorite 3 tools: Trade Triangles, Smart Scan & Alerts! 
The best part is that the MarketClub customer support team will be providing UNLIMITED support!
You can call or email for an instant response to any question, comment or concern.

Here’s that link:

I’d recommend you jump on this now.

No comments: