The Holiday Season and the MARKET!

We here at Brotelli Investments always enjoy the Holiday season.  I had the chance to go back to St. Louis last week for Thanksgiving. Spending quality time away from the markets with family and friends is very special and not done enough throughout the year. As for the markets, we sit at a very key level at just under 1188 in the S&P 500 and just over 11,050 in the Dow Industrials. The market will soon be making up its mind on a Christmas rally going into next year. With the dollar overbought and stocks looking strong we may be set to test the highs of the year heading into 2011.
Happy Holidays everyone!

Another LOOK at Housing

 

Demand

Supply

Price

I found the three charts above to be VERY interesting. With supply near its all-time highs and demand near its all-time lows it’s safe to assume that prices have only one direction to move and that’s lower. We will be watching the housing index ($HGX) closely heading into early next year as a dip in the index to new yearly lows would almost surely lead to another recession in the US economy. 2011 here we come...