Overall, I am loving this market action.  NASDAQ gave up gains and began to tumble and weakness was greeted by buyers. S&P is consolidating gains above a former resistance point that has now become technical support as the index gears up for a move to retest all-time high. Only 3 sectors are in the red, and the market has a bit of a defensive tone with Utilities outperforming.

All eyes are on the two big MEGA cap names.  I think Tesla (TSLA) will have the greatest broad market influence, as a short squeeze could spark a move to $2,000 and infuse the momentum trading crowd into a minion like frenzy. 

Note: the share price improved from initial reaction.

Shares of MSFT have rallied high in the week after posting earnings for eight straight quarters.

Home Sweet Home

Existing home sales snapped a three-month losing streak with a record increase, up 20.7% in June to 4,720,000 from May’s 3,910,000 units.  This was the biggest increase since the National Association of Realtors began tracking the series in 1968.  While a large number, it is still below pre-pandemic levels and down11.3% year over year.

First time home buyers accounted for 35% up from 34% in May and flat year over year.

• All - Cash accounted for 16% of all transactions vs 17% in May and 16% in June 2019
• Distressed sales were 3% in June about even with May but up from 2% in June 2019 
• Second-home buyers were 9% from 14% in June

Low rates, low inventory and more people looking to move to the suburbs add to the already inflated pricing and shortage of supply. Inventory of 1.57 million units was up from 1.55 million, but it is still down 18.2% from the prior year. 

Sales based on price

• Under $100,000 -11.1%%
• Under $250,000 -5.7%
• Under $500,000 +2.4%
• Under $750,000 -2.4%
• Under $1,000,000 -6.6%
• Over $1,000,000 -9.8%