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6/29/23 New Homes Are Selling Fast

News:

Stocks drifted directionless on Wednesday.

The major indexes ended the session mixed and little changed…

  • Dow Jones -0.2%
  • Nasdaq +0.3% 
  • S&P 500 -0.0%
  • Russell 2000 +0.5% 
Image from Depositphotos

Sector Round Up

The sectors reflected the indexes…

Of the 11 sectors, 5 ended Wednesday’s session higher, 5 were lower, and one closed unchanged.

At the top…

  • Energy (XLE) +1.0%
  • Communications (XLC) +0.5%

In the middle…

  • Industrials (XLI) +/- 0.0%

At the bottom…

  • Materials (XLB) -0.7%
  • Utilities (XLU) -1.5%

Notable Names

Certain household names in the Real Estate (XLRE) sector are soaring in the wake of the latest monthly “New Home Sales” report.

According to the U.S. Census Bureau and HUD, new home sales popped more than 12% from April to May. And investors are looking to cash in…

Image from Bankrate

Shares of Redfin (RDFN) are up more than 28% since the report was released.

  • The current share price is the highest for the stock since April 2022
  • Redfin’s market cap is near $1.3 billion, with that 0.3 being added this week

The share price of Opendoor (OPEN) continues to rise this morning in pre-market trading.

  • At writing, shares of the stock are up 47% since the report was released
  • Buyers have added about $1 billion in market cap
  • The stock is trading at its highest level since last September

Technicals: 

All signs of a recession have vanished from the market.

The VIX, aka the “fear gauge,” is on a long-term decline…

VIX Daily Candles – Chart by thinkorswim

Even with a hawkish Fed, the market needs genuine fear to fall. And everything we see says stocks want to move higher.

Your latest readout…

Timing:

This morning at 8:30 AM, the final GDP estimate for Q1 will be released.

Previous estimates have shown growth, and it would be highly unusual to see a revision into negative territory.

So long as the GDP growth remained positive in Q1, that will mark three consecutive quarters of growth.

If there was a recession … It’s over.

Watchlist:

*Low Float
^Open Position

*NREV on watch
GASS support at $3.80
TALS support at $3
ORIC on watch
^CIFR resistance at $3
CLBT support at $6.50
SWBI support at $12.50
ONCY support at $2.25
HEPS support at $1.60
EOSE on watch
BTBT support at $4, resistance at $4.50
PDCO support at $31
MRNS support at $10, resistance at $11

Secondary watchlist—float 100+ million

RDFN on watch
MARA support at $12 / $13
ATOS support at $1
ENVX support at $16
GOL
support at $4.50, resistance at $5
^IONQ support at $11.50
ABCM on watch
OPEN on watch

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