Market Update: Japan, Housing, Buying Now

The US markets are trading with slight gains with about 60 minutes to go before the opening bell. Overseas last night the gains continued for Japan and China as Hong Kong closed with a modest loss. In Europe the indices are mostly trading with small losses after the Bank of England made some remarks.

Japan Rising: The Bank of Japan held its interest rate unchanged at 0.10% and maintained its current policy course. This means lower Yen and higher Japanese stocks in the future. The Nikkei closed with a gain of 1.6%. Year-to-date the iShares Japan ETF (EWJ) is up 26% and the WisdomTree Japan Hedged Equity ETF (DXJ) has surged 44%.

ETFs to Watch: EWJ, DXJ, FXY

Housing Market: Two stocks closely tied to the housing market reported earnings and they are moving in two different directions. Lowe’s Companies (LOW), the home improvement store missed earnings estimates and the stock is lower by 2.5% in premarket trading. Home builder Toll Brothers (TOL) is up over 2% after beating on both the top line and bottom line. Home prices continue to rise as does demand, solid signs for the housing market. Could LOW be an anomaly? Considering Home Depot (HD) had great numbers yesterday and is trading at an all-time high, I am going with a strong housing market!

ETFs to Watch: ITB, XHB, XRT, RTH

WHAT TO DO NOW?

If you are in the market – remain in the market and let the rising tide take up your portfolio. If you are looking to get into the market or have a few stocks/ETFs you want to add to your portfolio I suggest buying on weakness. That may be a day or two of selling in the market or the individual position. The pullbacks are not deep and do not be afraid to buy when you seem weakness.