Market Analysis

Investors appeared to place little validity on the data from the Commerce Dept which showed that New Home Sales in January fell 11.2%.  According to Larry Baer with Market Alert, the historical standard reporting error for January new home sales data is plus or minus 14%.

Stocks improved today on testimony to the House Financial Services Committeee from Fed Chairman Bernanke that pointed to continued low rates due to the weak labor market.   Bernanke reiterated, however, that the Fed would stick to plans to end buying mortgage-backed securities (MBS) in March.  He put out what appears to be a new spin, which is that just but holding the $1.25 trillion of mortgages (vs beginning to sell them), the Fed would be supporting the market albeit he didn't go so far as to say "at current levels."