Zillow Stock Price eventually will have to reflect the declining Housing Sales numbers
that have now started a trend. I truly thought this summer was going to be the summer of pent up demand but its turned into the summer of discouraging and deflating demand.
So while homebuilders stock prices have started reflecting the downtrend in housing, Zillow and Trulia so far have not done so, but that doesn't mean they can go against the trend forever.
Look for an exhausting volume decline coupled with one last upside move to take advantage of the eventual decline.
Partial From today's Reuter's news:
Wall Street near flat as deal news offsets housing data
By Caroline Valetkevitch
NEW YORK Mon Jul 28, 2014 3:20pm EDT
An index of pending home sales unexpectedly fell 1.1 percent in June, the National Association of Realtors said. The report followed an 8.1 percent drop of new home sales in June, the biggest slump in almost a year. The PHLX housing sector index .HGX declined 1.6 percent. Shares of D.R. Horton Inc (DHI.N), the No. 1 U.S. homebuilder, were down 1.4 percent at $21.30.
Activity in the U.S. services sector stayed at its highest level in 4-1/2 years in July, though readings for new business and employment growth weakened, according to financial data firm Markit's preliminary data.
But the market may be hitting resistance as it hits key levels, with the Dow sitting just below 17,000 and the S&P 500 near 2,000.
"Technically, we are battling round numbers that I think give investors reason to pause," said Todd Salamone, senior vice president of Research, Schaeffer's Investment Research in Cincinnati.
The Dow Jones industrial average .DJI rose 19.69 points or 0.12 percent, to 16,980.26. The S&P 500 .SPX inched up just 0.92 of a point or 0.05 percent, to 1,979.26. The Nasdaq Composite .IXIC, though, dropped 1.70 points or 0.04 percent, to 4,447.86.
Family Dollar's stock jumped 24.5 percent to $75.49. It was the S&P 500's biggest percentage gainer. Dollar Tree gained 2.7 percent to $55.70.
Trulia's shares shot up 18 percent to $66.50. Zillow's stock rose 2.3 percent to $162.58.