Sold to close CLGX


Sold 400 shares of Corelogic (CLGX) at $37.69. This closes the position originally entered on 4/14/16 at $34.075. Total return less commission was $1430.02. Return per share after commission was $3.57505.


A mostly technical call. I would have loved to hold it longer, if the stock showed some strength. But it dropped first below the 10-day SMA, and then started to press into its rising 20-day SMA for several days, threatening to break through, today. That just doesn’t look to me like a stock that wants to march meaningfully higher.

On a fundamental basis, the picture is a bit muddled: Locally, here in the San Francisco Bay Area the real estate market is showing signs of stress. Inventory is increasing, sales are down, and median price is decreasing YoY for the first time in years. All this is happening despite mortgage rates reaching a 3 year low:

Current mortgage rates are reaching a new lowCurrent mortgage rates are reaching a new low

Some of this seems to be a local phenomenon, though. While inventory is increasing nationwide, May sales of existing homes were very brisk, according to the most recent NAR statistics.

To reconcile the differences: The San Francisco real estate market, like that of the SF Peninsula and Silicon Valley relies to a great extent on buying pressure exerted by recently minted tech millionnaires. The lack of high profile IPOs during 2016 has made those a rare species. How that situation resolves is currently not clear. It bears watching.

June 22, 2016 at 12:25pm · CLGX · sell to close · stocks · real estate

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