The Dow Rallys on BUT..

Another rally by the Dow. Dow closed at 12,134.68.

But..

What about news like this? Doesn't it matter?

Record drop for home prices

The article stated that..

• Home prices posted their biggest drop on record in September while sales fell for the sixth month in a row, a real estate group said Wednesday - the latest signs that the housing market is still weakening.

Six months in a row!

The article then reminds that "Month-to-month declines in home prices are not uncommon, but a year-over-year drop is a more serious sign of a slumping housing market."

I wonder how many more signs are needed? Consider the following recent headlines from CNN website.

• Foreclosures spiked in August
  Rising payments on adjustable-rate mortgages contribute to 53% jump in foreclosures.
  By Les Christie, CNNMoney.com staff writer
  September 13 2006: 2:45 PM EDT
  
  NEW YORK (CNNMoney.com) -- With real estate markets slowing and mortgage rates well above levels of recent years, times are getting tougher for homeowners - the number of homes entering into some stage of foreclosure is surging, according to a survey released Wednesday.
• Housing starts tumble
  Builders pull back on new projects, permits as latest reading shows real estate market even weaker than forecast.
  By Chris Isidore, CNNMoney.com senior writer
  September 19 2006: 10:50 AM EDT
  
  NEW YORK (CNNMoney.com) -- Home builders slammed on the brakes in August as starts on new homes sank to their lowest level in more than three years, and a drop in permits signaled more weakness ahead for the real estate market.
• Home prices: 1st drop in 11 years
  Sales slow, prices hit by second biggest year-over-year drop on record; surge of homes for sale seen keeping prices weak.
  By Chris Isidore, CNNMoney.com senior writer
  September 25 2006: 1:41 PM EDT
  NEW YORK (CNNMoney.com) -- Home sales slowed and a key measure of prices fell for the first time in 11 years last month, spurred by the biggest glut of new homes on the market in more than a decade, an industry group said Monday.

Houston, do you think we have a problem?

Oh, today's CNN market rap was named rather nicely. A stock rally about nothing