Thanks a lot to my reader Sweden for asking for another post. In the past week almost nothing happened, and I was in vacations, so I was not sure I have enough news for the post. But let me try.

What happened this week, while I was in vacations:

  • The most influential event was the dollar rebound from the multi-year lows. That’s what all currencies do – they bounce out from support and resistance until major events make them fall through. The treasury interest is up, so dollar is more interesting for carry trade. I think that made all traders, TV hosts and money managers to relax and let market move up
  • It’s very clear that capital is moving from small stocks into big ones. REITs are moving down. Remember this post?
  • All news related to housing were rather bad, but everything outside of real estate is ok (for now)
  • Spain is dumping 80 tons of gold. When spanish real estate bubble pops it won’t be pretty

What to watch next week:

  • Next week is the big housing week. I expect bad sales and high inventories. The is posting exploding inventories
  • Monday is Lowe’s report, I’m very curious. Also reports from Toll Brothers and Target
  • Yen is extremely low, I don’t know if there is enough force to keep it there. Let’s watch Yen
  • There is a huge market bubble in China. I don’t know when it pops – maybe next week, maybe next year – but when it pops it’s all will be over for this economic cycle