Homebuilding: The National Association of Homebuilders Market Index ticked up this month. This index, which measures homebuilder sentiment, is still at very low levels. However, the tick up caused investors to be optimistic that that there may be some light at the end of the tunnel for homebuilders. As of 3:15 most homebuilding stocks were up roughly 10+%. From the bottom, the index of homebuilding stocks that I follow is up 25%, but still down almost 25% from the beginning of the freefall that began in July.
NAHB Homebuilding Index (Seven Years)
Bad, but less bad: This seems to be the theme today. The homebuilding news was bad, but less bad, and bank stocks are strong today because the Bank of America earnings release was bad, but less bad.
Europe: Late in the day, news came out that France and Germany agreed to increase the size of the European rescue fund. This added fuel to an already strong day. On the news, the markets quickly added 1+% to their gains on the day.
Crocs: After warning that results would not be as strong as expected, CROX dropped almost forty percent today. This is a good example of what can happen when disappointments occur in stocks where expectations were very high.
CROX (One Year)
![clip_image002[4]](http://lh5.ggpht.com/-hTBGQf8c-ig/Tp63o5I3VGI/AAAAAAAADEs/pH2YulCPDD0/s1600-h/clip_image002%25255B4%25255D%25255B3%25255D.jpg "clip_image002[4]")
Market Today: As I alluded to above, the market was very strong today. Better than expected economic news began the rally, which was then fueled by positive news out of Europe. All sectors I follow were strong, with homebuilders and financials particularly grabbing attention.
Have a good day! Brent
