Housing Stocks

I continue to believe that the housing picture could turn out nastier than just a "soft landing." And I believe the chart below backs me up. This is a WEEKLY chart of the Phila. Housing Index. The chart is just plain bearish. And by the way, this chart is the reason why I don't think Bernanke is going to raise short rates at the end of June.

If it's the market's function to look ahead, to discount the future, then I think housing in the US is in trouble. At least the home-building stocks think it's in trouble. Let me put it this way -- this is not a happy chart..