If we look beyond Case Shiller Index, Clearcapital index is showing us double dip in housing is in.

Clear Capital (www.clearcapital.com) today released its monthly Home Data Index™ (HDI) Market Report, and reports prices have double dipped nationally 0.7 percent below prior lows experienced in March 2009. This month’s HDI Market Report provides the most current (through April 2011) and relevant analysis of how local markets performed compared to the national trend in home prices.

Report highlights include:

• National quarterly home prices changed -4.9%; while year-over-year national price changes reached -5.0%.
• National home prices have fallen 11.5% over the previous nine-month period, a rate of decline not experienced since 2008.
• In a sign of the continued volatility and fragility of home prices, all the major Metropolitan Statistical Areas (MSA) tracked in this month’s report showed quarter-over-quarter price declines.
• National REO saturation rate reaches 34.5%.

Taking out new lows……

Full report,

http://clearcapital.com/company/MarketReport.cfm?month=May&year=2011

Latest Update from Treasury. Another 2B added from yesterday. Leaves us with 12B before the ceiling is reached…..

Total Public Debt

Subject to Limit                $ 14,282,174

Statutory Debt Limit       $ 14,294,000

Full report below, focus on Table III.

https://www.fms.treas.gov/fmsweb/viewDTSFiles?dir=w&fname=11050400.pdf

Silver has reached the big Fibo retracement from the 50 Usd top. The move has been absolutely brutal. We have been arguing for a correction for some weeks. After the big correction down to the Fibo retracement level, which also coincides with the 100 day moving average, we are advising covering shorts, and buying small longs here. We will get a fast snap back up again, that will be rather short lived, but we believe the risk reward of shorting Silver here is not attractive short term.

We saw some of the biggest moves in commodities ever today. Silver down 12%, oil down almost 10%. These moves have totally wiped out some over leveraged hedge funds today. The one asset still disclocated from the reality is the equities market. Adjusted for the Usd, Spx is almost flat, since the nominal high reached some days ago. While everybody still believes Ben is buying equities futures, all is fine in the equities space, but let u s see if things “spill over” to equities. If selling starts into equities, last reports from NYSE, show that margin and net leverage in the stock market are at almost all time highs. Selling in equities, will for sure trigger a similar round of margin calls, as we have seen in commodities.

So we left the Europeans out of the party. Spx now up for the day. Short gamma puking across all assets.

We have been arguing for a Silver correction during the past weeks. After the huge volume was seen, thetrader wrote about alpha chasing hedge funds, all gathering in the same trade, and buying Silver in a panic mode.

http://www.thetrader.se/2011/04/24/silver-etfs/

This is now all reversed. Short term target of 35 was hit today, but Silver is approaching 100 day moving average, which will be the first big support. Meanwhile, watch people get their margin calls. Greed and fear at it’s best.

The inflection point is here. Top Trades of the year, have all reversed massively, with the lastest one being the Usd. All these trades are overcrowded, and overleveraged. The huge volatility increases in all these trades, will catch many wrong. From above, gold, silver, brent and finally Usd.

While market slowly is attemting to go up again under no volume, we provide you a narrative story from a veteran Seal Team Six.

“I wouldn’t want to die in a cage of starvation or have my head cut off for some video to be shown around the world on the Internet. My attitude is that if the enemy wants to kill me, they’re going to have to kill me now. We despise would-be dictators who wish to dominate us—SEALs steer the rudders of their own destinies. Our world is a meritocracy where we are free to leave at any time. Our missions are voluntary; I can’t think of a mission that wasn’t. Ours is an unwritten code: It’s better to burn out than to fade away—and with our last breaths we’ll take as many of the enemy with us as possible.” (VF)

“The navy SEALs Team Six is so elite and secretive that its very existence has never been acknowledged by the military”. We’d love to see the Seal Team Six of the Fed.

http://www.vanityfair.com/politics/features/2011/05/navy-seal-team-six-excerpt-201105?currentPage=1

“Pacific Investment Management Co., which runs the world’s biggest mutual fund, said it’s betting the euro will fall because its current strength doesn’t adequately reflect the risk that the union may disintegrate.” (Bloomberg)

http://www.bloomberg.com/news/2011-05-04/pimco-bets-on-weaker-euro-stronger-won-aussie-singapore-dollar.html

As thetrader pointed out yesterday, some of the world’s smartest money, is exiting the assets bonanza. Glencores IPO is probably very well timed, as these guys represent one of the best investing brains in the world.

 http://www.thetrader.se/2011/05/04/glencore-market-top-timing/

If they thought everything is so cheap, why would they sell “themselves” short? They have already a very nice 3 day P/L.