Death-Defying Game of Chicken in the Housing Market - Issue #511

You are receiving this email as a part of your free subscription to the Wall Street Daily e-letter. Click here to manage your subscription. Watergate Suddenly Looks Like "A Walk in the Park" After spending 10 months inside of Capitol Hill, political intelligence expert, Robert Williams, is finally releasing results of his investigation into the private affairs of our nation's highest lawmakers. The focus of the investigation is the "loaded dice" Williams says that our lawmakers have been playing with for the last 20 years. The latest is a new bill called "Unicorn." "I followed the money trail on Unicorn, and what I found was, well... shocking. It has the power to spawn an entirely new bloodline of millionaires by the end of the year." Click here to view the details. A Nasty Game of Chicken... Wall Street Style By LOUIS BASENESE, Chief Investment Strategist Every Friday, I undergo a transformation: I switch from being the boring professor - who specializes in droning, long-winded lectures - to the nutty professor, who blows crap up. That might be a bit of an exaggeration. But instead of boring you with words, I mix it up and enlighten you with a few striking charts. Longtime readers tell us it's their favorite column of the week. Let us know if you agree by dropping us a line at CustomerService@WallStreetDailyInfo.com. Without further ado... Who'll Flinch First? Based on the latest National Association of Homebuilders (NAHB) sentiment index, homebuilders are more cheerful than they have been in a long, long time. The latest reading jumped from 51 to 57 - the highest in seven and a half years. The move caps off a two-month, 13-point rise, too, which hasn't happened since "I'm Too Sexy" by Right Said Fred topped the music charts. (That was in February 1992, in case you stink at pop culture trivia.) So are investors just as enthusiastic about homebuilding stocks? Er... not so much. Ever since mortgage rates spiked, they've run for the exits, setting up one of the biggest divergences in recent history. Homebuilders' sentiment and homebuilding stocks traditionally move in lockstep with one another. But that's not happening right now, setting the stage for the biggest game of "Chicken" on Wall Street. As Bespoke Investment Group notes, "Going forward, it will be interesting to see if this recent divergence corrects itself - either by housing stocks picking back up again, or homebuilder sentiment pulling back." My money is on housing stocks reversing course. Anyone care to wager with me on that? Yes, Mobile is Kind of a Big Deal Occasionally, I get ridiculed for my over-the-top enthusiasm regarding all things mobile and the runaway growth in the sector. But it's warranted. And here's the proof... In the last decade, the number of mobile phone subscriptions has surged from 662 million to 6.4 billion, according to the International Telecommunications Union. That translates into a 91% global penetration rate, making mobile phones one of the most ubiquitous technologies in the world. Only steel blades, cotton t-shirts, aluminum pots and plastic bottles are more prevalent (if they actually count as innovations). Even more staggering is the uptick in mobile internet usage. The number of users recently topped two billion. So forget Ron Burgundy... mobile is kind of a big deal. Invest accordingly. Or miss out. That's it for today. Before you sign off, though, do us a favor: Let us know what you think about this weekly column - or any of our recent work at Wall Street Daily - by sending an email to CustomerService@WallStreetDailyInfo.com, or leaving a comment on our website. Thanks, and enjoy the weekend! Ahead of the tape, Louis Basenese Make This Market Work for You A lot of people are confused about the market right now. Will U.S. debt and global money worries drive prices lower? Or will an economic recovery lead to higher stock prices? Trouble is, nobody knows. That's why many market watchers are turning to this amazing little "any market" strategy where you punch in a code and could collect cash instantly. And right now, three brand-new codes have just been issued, good for a potential $1,050 in instant money. Just put in the codes and the money shows up. Here's how it works. If you enjoy reading our no-nonsense, unbiased research at Wall Street Daily, feel free to share it with your family, friends and colleagues. Simply send them this link, so they can sign up for the TRUTH... for free, of course. Republish Wall Street Daily on your website or blog for free. LEARN HOW Have a question or want us to expose the truth? 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