I have been very vocal about the weak fundamentals of late. But to say they are all negative would be inaccurate. Tuesday served up a prime example with a surprisingly strong Housing Starts report.
Certainly things had already improved for housing from the darkest days of the Great Recession. Yet they were a far cry from a boom that could really add to GDP growth. This most recent report gave a glimmer of hope that it could finally be taking off. If this trend accelerates then it certainly adds to the US growth story and a benefit for the stock market.
This news helped me get a bit aggressive today after a few weeks hunkering down at 35-40% long. Now I am up to 65% long in the Reitmeister Trading Alert.
I am not 100% long because manufacturing data is still suspect. Plus the recent rise of Treasury rates and strength of the dollar are still troublesome. As those problems subside then I will get more aggressive. However, if those problems grow worse, then I will have to climb back into my defensive shell.
aka Steve Reitmeister
Executive Vice President, Zacks Investment Research