Republican Convention will take the market up the rest of the week and I believe pending home sales come out tomorrow at 10 am and will give the builders a boost. Also GDP is coming out at 8:30 which could go anyway, but based on earnings, I think we will meet estimates.
Today was a bad day for the market as a whole based on the media coverage of Isaac. Tomorrow we will wake up and find it was a non event and the media will have to run clips of Katrina again.
Housing is in the very early stages of a recovery and it will be very difficult to pick out short term tops as we go. And KBH will not see a positive quarter for some time to come.
Looks like no one was right or wrong on this call. We had the good numbers but the market took it as we won't get QE3. Personally, I don't think we need QE3 and the market should be positive if we get data that shows our economy is recovering now and real estate is improving. Just need to get the market off Bernanke's every word and give up on the whole fiscal cliff buzz.
I am impressed with PHM's performance in this down market!
Let's see, GDP revised up slightly and pending home sales up good. The market is flat and PHM is up slightly. This afternoon the Beige Book is coming out at 2, maybe there will be something there to get things moving. My guess is it will be a non event and everyone is waiting for Bernanke on Friday.