Major Market Movers

Housing Data…2007

As the year 2007 is taking her last breaths, and the year 2008 is just about to be born, markets are putting the final touches on the U.S. economy's grave, with some housing data to be released, and expectations that the housing slump CONTINUED throughout all 2007, and probably will continue in 2008.


The U.S. new home sales probably fell in the month of November to 717,000 units, down 1.6% from October's reading of 728,000 units on an annual base, the decline is expected despite 0.75% rate cuts which took place in the American economy till the beginning of November.

The economical growth is expected to slow down in the 4th quarter of 2007 to 1.0%, all as a result of the housing slump that happened in 2007, while inflation skyrocketed in this particular quarter, now the U.S. economy is in deep crisis if growth actually slowed down considerably, the interest rate decision will be like mission impossible, and the reaction for any decision will not be favored in the markets.

The housing slump has done a great deal of trouble for the economy, not only in America but even worldwide, leading to a huge credit crisis that struck the financial sector all over the world, and drove financial markets into everlasting turmoil.

Today's data along with Monday's will be the finals for this year, and they will carry a great significance, until the release of the advanced reading of GDP in the 4th quarter, new and existing home sales will be the most important.

Let me remind you again dear reader that due to low volumes in the markets the volatility increases, and sometimes the sensitivity to any release increases, as a small number of investors can achieve huge market movements.