Is the U.S. housing market truly at a turning point, as investors seem to increasingly believe? Or is this actually a false dawn, meaning that there are problems and pain ahead for those who turned bullish too soon?

Housing Market Showing Signs of Stability? Puh-lease!

General Motors Corp. (NYSE: GM) is closing in quickly on its June 1 deadline to finish overhauling its operations, or opt for Chapter 11 bankruptcy. Because that deadline is actually one week from yesterday (Monday), analysts and investors will be watching GM closely this week.

Unless we see a recovery in the housing market, we won’t really see a recovery in the economy.  But is the housing market approaching a bottom? Or does it still have a ways to go?

New housing starts fell in December to the lowest levels since the government started compiling statistics in 1959, as surging unemployment continued to rock the real estate market. 

The stock market struggled to recover from a tumultuous 2008 yesterday (Tuesday) while digesting a trio of downbeat economic reports from the manufacturing, housing and service sectors.

Andrew Gordon at Investor’s Daily Edge says “the crap is about to hit the fan” for homebuilders.

Home Prices Still Dropping; Chrysler Chases GM; Oil Slides Back; Lennar Loss Beats Estimates; Kullman to Helm DuPont; ImClone Plays Hard to Get; France and Britain Nuclear Match?

As the housing market slumps it should take anything related to building or furnishing with it.

However, the stock of home appliance maker Whirlpool (NYSE:WHR) has risen 6.4% in the year to date despite razor thin margins and a wider downturn.

Wave Strength Options Weekly editor Adam Lass says this is a great opportunity to make at least 30% with a simple short play.

Buying strategic put options could increase these gains up to 118%.

Looking at the credit data, it seems people have begun to stop paying their bills in order, from most expensive to least. Houses came first – that’s the most expensive bill. Autos came second.