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With headlines everywhere boasting that a double-dip in the housing market has already arrived, the presumption is that related securities would be selling off well in front of the imminent doom. After all, memories of the day in day out floggings that these stocks took in 2008 cannot have already been erased from traders’ minds. However, the above presumption has proven to be quite a costly one for bears, particularly with regard to many REITs.

Regardless of how well-informed you may feel while reading the business section on a Sunday morning at the breakfast table, the fact of the matter is that the market is the ultimate arbiter. If you had been acting on sensationalist journalism over the past several weeks/months/years about the housing market via short-selling REITs, you would be recklessly disregarding the notion that Mr. Market could have easily already priced in years of doom and gloom back in 2008.

Evidence? See the charts below, as well as many other REITs.

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Those firms that engage in the production of toys and games are set up well here, all things considered.

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[youtube:http://www.youtube.com/watch?v=F1anxAWHZVc&feature=related 550 412] _________________

You have to love Mr. Market’s sense of humor.

In the face of last week’s big “risk off” trade, some of the absurdly overpriced home furnishing stores, like Williams-Sonoma, not only held up remarkably well, but look poised to outperform should the market recover next week. Understand that with WSM, you are talking about a business that routinely charges over $1,000 for shiny pots and pans (lol). Ironically, those “silver” and “gold” pots did not sell off in sympathy with this precious metals last week, at least not at a store like WSM. Beyond that, The PPT algorithm detected a huge uptick in the hybrid scores for home furnishing businesses last week.

Below, you will find some annotated charts of interest in this sector.

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