BREAKING: Despite all the "weather" shorts, US New Home Sales beat big in February. Real big. New home sales were up +7.8% month-over-month versus a -3.5% estimate.
More notably... sales were up a remarkable +25% year-over-year as organic strength and very easy compares continue to support improving rates of change in housing demand.
The housing bears and bond bears have been taking it on the chin the past few weeks. Housing (ITB) is up over 2% since we added it to Investing Ideas on March 4th versus 0.31% for SPY. Our Long Bond call (TLT) is up 4.25% in that time.
We are back to net long, in signal terms on that barn burner of a Housing print.