Your Monday Blip 2/22/21

Your Monday Blip 2/22/21

Tech stocks continue to slump as the Dow gained while the NASDAQ spilled the champaign. At the close the Dow was up 27 at 31,521 on higher volume led by energy, materials, banks, and industrial stocks. Both IBD and BTS continue to show markets in rally mode but it seems the gap between high flying tech and the rest of the market is closing with sector rotation into cyclical and value plays.
The National Association of Realtors or “NAR” posted its latest housing market data showing that existing home sales rose 0.6% in January. While this is not much of an increase it does reveal that sales continue to hold at the highest levels since 2006 with every major region of the country showing 20%+ gains over the past year. Back in May of 2020 housing sales plunged 32% but then recovered smartly and are now up 17.4% from their pre-pandemic levels. It is expected that home sales will soften in February due to the polar vortex but after that gurus are expecting another strong year for home sales in the US. Housing inventory fell over 25% from a year ago and now sits at the lowest level on record which dates back to 1999.
Oil prices moved up about 3% with WTI trading over $61 per barrel. The storm in Texas knocked US producers and took refineries offline and oil traders are expecting a slow recovery back to normal levels of production. Shares of Marathon Petroleum which is a big refiner jumped today along with oil majors Exxon and Chevron. Pipeline stocks and smaller producers also saw market gains. On an anecdotal research note, I was in REI Sunday and decided to buy some white gas and propane/butane fuel containers and while getting these an REI employee told me it was good to be stocking up now because their suppliers had already informed REI of a looming shortage in the camping fuel arena due to supply demand imbalances.