The blind leading the blind!

The DOW is up 80+ today as I write this. What a golden opportunity to short. Yahoo's top financial news is "Wall St. Jumps on Good Housing News". What exactly is this "good" housing news? New home sales came in above expectations. The annualized July sales rate was 870,000 homes. But how many are they still building? New Housing Starts reported on 8/16 tells the truth. The annualized rate was 1,380,000 homes. The homebuilders are still building 59% more homes than they are selling. On top of that, home prices fell almost 4%. Ouch!

Time to short homebuilders some more.