Housing - A big week

I have a theory. One of the reason's that WHR & ETH & BMHC are up is classic buy before earnings and then dump.

Monday is Lowe's release. It will be very strong when it comes to air conditioner sales. But Lowe's is like Home Depot: a housing bellweather stock. And they won't be strong for same store sales.

Tuesday Toll brothers releases its earnings, followed Wednesday by the Housing sales release for existing homes. Thursday is new home sales. There will be some bad news everyday next week for housing.

And Thursday is the consumer durables report: ETH and WHR will be affected.

While inflation is looking benign, this week is about housing and consumer spending on big ticket items. As of 2 weeks ago, FUD left the market (FUD = Fear, uncertainty, doubt). But FUD could re-enter the market IF a housing slowdown is interpreted as a consumer spending issue.