Archive for August 25th, 2010

Long-term Breakout in Gold is Likely

Long-term Breakout in Gold is Likely

| August 25, 2010

We have been monitoring the development of bullish consolidation formations on the daily charts of the Gold Currency Index (GCI) and gold in US dollar terms during the past several weeks, and today the GCI finally broke well above congestion resistance in the 31 area, joining gold in forming a confirmed bullish setup that suggests [...]

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Regional Manufacturing Surveys Project a Decline in August PMI

Regional Manufacturing Surveys Project a Decline in August PMI

| August 25, 2010

The Institute for Supply Management will release its August PMI next week and regional manufacturing data suggest it will show another moderate drop, though it will likely remain above the 50 level. Given the August data that have been released already, the PMI should come in around 52 or 53, still indicating expansion but also [...]

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Mortgage Purchase Applications Remain Near Long-term Lows

Mortgage Purchase Applications Remain Near Long-term Lows

| August 25, 2010

The Mortgage Bankers Association reported that their Purchase Index increased 0.6% last week, continuing to hold near recent long-term lows. Refinancing activity continues to surge as existing homeowners seek to lock in historically low interest rates. However, the lack of demand for new mortgages suggests that the demand vacuum we have observed in the wake [...]

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New Home Sales Fall to Record Low

New Home Sales Fall to Record Low

| August 25, 2010

The Census Bureau reported that new homes sales decreased to 276,000 in July from a revised 315,000 in June. As shown on the following graph from Calculated Risk, this is the lowest number on record. As we discussed yesterday, the sharp drop in July reflects the removal of government stimuli from the residential housing market [...]

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Short-term Forecast for August 25, 2010

Short-term Forecast for August 25, 2010

| August 25, 2010

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