President Trump was so busy Monday morning that the market has had a chance to ignore the pending sales index collapsing to its lowest point in a year. The news could be more a reflection of sticker shock from the first noticeable uptick in mortgage rates and the continued lack of supply on the lower-end of the market.
Instead, the market rallied on talk of greater defense spending, commencement of building the wall and talk of repealing and replacing Obamacare.
I’ll have greater details on the proposed budget and its various challenges in the morning report. Its clear investors are believers, but are more cautious as the rubber meets the road, which means even market highs hold as resistance until the GOP makes them reality. By the same token, it feels like floors have been put into place.
Investors are now looking for a similar floor to be put into place market wide. Guys, let’s not force the issue. Our cash position is low and dear for the moment.
