Here’s the setup.
A non-financial media outlet, like Drudge (among others), is headlining with worries of year-end tax selling exacerbated due to “Fiscal Cliff concerns.” Click on the above graphic to enlarge. Essentially, Drudge is fading the idea of a cheerful Santa Claus rally.
On the flip side of the coin, I see this evening that CNBC.com (along with The New York Times) is headlining with the title:
Big Money Bets on a Housing Rebound
In this case, you have the financial media fading all of the “shadow inventory” espousing housing bears.
In both instances, I am inclined to fade the faders–Drudge and CNBC/NYT, as I expect the housing stocks to underperform in the coming months.
We should of course know how this plays out, soon enough. However, the whole year-end tax selling on steroids thesis is a bit too popular these days in the media for my taste.
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you beat me to the drudge screencap by about 10 minutes :p
Yes Chess. I thought the same with the NY Times headline, hence short $HD and $SHW.
Thanks for the Phil Ivey video. The man has balls of steel.
Ivey has a deal with the devil.
Heh nice