Monday, January 12, 2015

One part of the US market is still ignoring the volatility


Homebuilders ETF still looks fantastic. Almost as if they're predicting continued improvement in the US economy over the next year instead of "deflation".

Home Despot is still doing fine, almost as if they think US consumers will continue to buy home goods over the next year.

Welcome to Costco... I love you...

Yet Norfolk Southern, an eastern seaboard rail and intermodal provider, is still down 10%. A sarcastic bastard would say that this means the market thinks all Americans who are about to buy homes will furnish them with locally-manufactured goods, instead of exploiting the strong US dollar and buying imports.

Alternately, it means the market is a moron.

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