Your Thursday Market Blip 5/21/20

Your Thursday Market Blip 5/21/20

Stocks pulled back in light trading volume and the only reason behind the selloff appears to be rising trade tensions with China. The Dow closed 101 points lower at 24,474. IBD continues in rally mode while BTS has now gone to 75% high yield which is a signal that their models reveal more confidence in markets. Hats off to Sir Isaac for this wonderful data.
Sales of existing homes fell 17.8% from April to May according to the National Association of Realtors. This is the largest drop since July 2010 when the financial crisis homebuyer tax credit ended. The supply of homes for sale fell 19.7% and this decline in inventory is the lowest figure on record. The low inventory also boosted the average price of a home up by 7.4% to $286,800. In the western region the number of home sales fell 25% for the month while in the Midwest sales were down 12%. Signs are already pointing to a recovery in housing however as mortgage applications are down only 1.5% year over year while just six weeks ago they were down 35%.
Unemployment continues to worsen and in the State of Washington the jobless rate is now over 15% which is ten points higher than in March. The number of unemployed has risen to 527,000 statewide vs March in which there were 25,400 jobs lost. While public construction in the state has been allowed to carry on private construction was shut down. Go figure! Private construction needs to be reopened.
Speaking of reopening. The scouts are teaming up with two other troops and the Phinney Neighborhood Association to do service projects for elderly folks who are not able to get out. The lunkheads will cut lawns, weed gardens and eat any and all pizza slices left on the front porch.

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