Yup, seems like short covering to me, probably people getting out of the way before next Tues. The rebound in CFC and some financials over the last few days has led people to believe that the HB's have bottomed. lol
I am sitting this one out and will be reopening my short positions if we get a pop next week. The market is still in a state of disbelief that a recession is upcoming. They're banking on the Fed turning the economy around, but unfortunately it's not going to happen this time. When the brokers and IB's report next week it should throw a little more gas on the fire, but as long as people think the Fed will try to keep things afloat w/ the rate cut, the market will act accordingly and it will stay propped up.
I'd like to know the same thing. Technically, it's probably short covering. But I can't find any news out there that would have triggered such a response. Hovnanian is basically giving houses away this weekend to help reduce its inventory. "The Deal of the Century," he says. That's about all I can find. Desperation discounting. That the HBs are up on this news makes no sense whatsoever. Then again, we've all seen this sort of craziness before. Anyone have further clues this morning?
Technically speaking, there's some weird shit going down.
There's still a direct correlation between our stock market and the US dollar/yen trade.
I've noticed that after the stock markets close, the US dollar will begin to show weakness against the yen, but once the stock markets open, the US dollar begins to show strength against the yen and all major indices rise and intra-day, the direct correlation is move obvious. ...coincidence? I think not.
Since most black-box traders follow pretty much the same algorithms, they're doing the same things at the same time, i.e., they've achieved "spurious synchronicity", which causes all of the black boxes to buy the same shit at the same time, irrespective of the shit's fundamental value.
Besides their big sale this weekend, Hovnanian was also on television (CNBC?) this morning calling a bottom in housing. If builders rally some more following the offical annoucement of a rate cut, my short positions could really be hurting. This crooked market makes me want to cash in my now-reduced profits and not play again! Way too much manipulation.