Why do homebuilding stocks always go up on lousy housing data?

Seems like the only thing that can give the markets a down day is a combination of :

9.0 earthquake
+
major tsunami
+
Nuclear disaster
+
a new middle east war
+
terrible economic data
+
impending sovereign default in Europe


and even then the market is back up after a couple of days like nothing happened

Amazing what FED+QE can do.
 
Quote from Ghost of Cutten:

It's pretty simple - if you expect something terrible, you set the price lower than if you expect something merely bad. So, if you were expecting something terrible, and it turns out to be only bad, the rational price is higher than if it turned out terrible. Hence price will rise from 'terrible' levels to merely 'bad' levels.
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Ghost of Cutten, you seem very knowledgeable about these things and so I would like to ask you related question, something that's been gnawing at me for the better part of year, possibly longer:

What does it mean when Goldman Sachs upgrades a stock from "Conviction Sell" to "Sell"?

:D
 
Maybe im just being naive but i thought maybe the housing index should not be at a 2.5 year high, up over 100% from the bottom. Guess I was wrong looks like another huge up day today this is clearly a V shaped recovery.
 
Quote from bonds:
----the stocks initially sell off on the number and then go up from there and finish well in the green.
----LEN and KBH sell off then move up and are now green.
----Why dont these bad numbers lead to bad price action in the stocks?
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1) The stocks "respond" as they should but you can't expect them to keep on following through in the "logical" direction indefinitely. :)
2) Too much trading activity is short-term oriented. When a stock appears to exhaust itself in one direction, it has to reverse itself in order to "create/attract" trading volume. Trendiness has been replaced by mean-reversion. :(
 
Quote from bonds:
----housing index....
----at a 2.5 year high....
----up over 100% from the bottom.
----a V-shaped recovery.
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It's easier to "manipulate" paper-assets instead of hard-assets. :(
 
I am short PHM and KBH. Sell the rumor buy the news has always been the way shorted stocks going to hell act. Fleetwood Ent. Champion Ent. and Monaco Coach have all been my victims. Come with me if you want to live.
 
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