shortcovering in action, page-23

re: weekly chart is bearish enough T/As - Roach says that construction next nail in the coffin, ; here are some fundamentals;

"What's more, as Morgan Stanley's Steve Roach points out in an especially perceptive commentary that popped up on our screen Friday, "construction activity is the last shoe to fall in a housing downturn. Due to sunk fixed costs of land and property acquisition by developers, homebuilding typically continues into the inventory overhang phase of the cycle. Such is the case today -- with residential construction activity still holding at relatively high levels...."

However, Steve sternly warns, "once this last gasp of project completions runs its course, the construction downturn should gather force. Given the magnitude of the current inventory overhang, the downside of the building cycle could be both deep and prolonged...."