S&P Case Shiller Index surged up 13.2% in March, the fastest price gains since the housing bubble top in 2005. For example, Phoenix was up a ballistic 20.0%, San Diego 19.1%, and Seattle 18.3%. The gains may continue, but with a slower acceleration, for a couple of years before topping.

The US Money Supply (M2) has grown by 30% during the past 15 months, the fastest rate in history. In general, strong monetary supply induces lower interest rates, unfavorable for the US dollar but favorable for stock markets. However, we need to watch when the growth of the money supply stalls and thus hints a turning point.

In terms of this week’s market condition, we used the high volatility settings to scan the conforming credit spreads. Premier Members can view the screening reports of conforming credit spreads, and others can join us to test-drive free for 30 days.