3 charts we are watching: What is the next delta in housing?

The Market Ear Picture

Maginot Line or strong bottom formation...?

The Goldman "Housing Activity" index has been remarkably steady lately. "The index held at 5 for the week, as the offsetting effects of lower supply and higher home prices have kept it in a relatively narrow range in recent weeks. This comes as purchase applications hold near a new cycle low, 43% below 2019 levels". Follow this index closely for clues of the next delta in housing.

Source: Goldman



Homebuilders chart has something to tell us...? First proper sign of weakness in 6 months. Note the big trend line as well as the 100 day coming in right around these levels.

Source: Refinitiv


HFs shorting housing

The "US Housing" theme has seen a notable uptick in short adds in recent weeks, following months of relentless short covering.

Source: MS Prime


See TME's daily newsletter email above. For the 24/7 market intelligence feed and thematic trading emails, sign up for ZH premium here.