This is ridiculous....
July's sales drop follows the expiration of a government tax credit program that offered certain buyers up to $8,000 to sign a contract by April 30. Deals originally needed to close by June 30, but lawmakers pushed that deadline to Sept. 30.
Michael Widner, of Stifel Nicolaus & Co., noted that immediately following the expiration of the credit, new-home sales fell sharply in May and then rebounded strongly in June. Investors expect that there could be a sizable jump in August if the pattern repeats, he said, or a bounce because the number came in so low.
Mr. Widner doesn't generally advocate trading on monthly home-sales figures because they are volatile numbers and subject to large revisions. But, he said, for better or worse, this seems to be a market where everyone is trading ahead of the next data point.
http://online.wsj.com/article/SB10001424052748704125604575449682462176758.html?mod=ITP_moneyandinvesting_4
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