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Money McBags is the preeminent financial humorist and money maker in the world. While known for his ability to find and invest in undervalued equities, Mr. McBags is also a world class dick joke teller, an aficionado of lovely ladies, and avid reader of books without pictures in them. With... More
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When Genius Prevailed
  • 8/5/10 Midevening Report: Market continues moving on up, can now afford eastside deluxe apartment in the sky 0 comments
    Aug 4, 2010 5:36 PM | about stocks: WFM, SMCI, PCLN

    The stock market crept up again today as the equity markets and bond markets continue to decouple like Bristol and Levi, Mel Gibson and sanity, or Carrie Prejean and her top.  In terms of macro news, the ISM released their report on the services sector and it both beat analyst guesses of 53 by coming in at 54.8 and was above last month's reading of 53.8 which Money McBags believes is the first time a piece of macro data has done both of those in the same month since crude inventories were up in May of 2007 as a result of the release of Andrew Dice Clay's "Dice Undisputed" on DVD.  The ISM's employment gauge rose from 49.7 to 50.9 and that rounding error is enough to give economists with shorter sight than Mr. Magoo a modicum of hope.

    In other slightly positive relative macro news, ADP said employers added 42k jobs last month which should be a welcome sign for the 16MM to 20MM people who are still unemployed (and yes that was sarcasm).  At this rate, the recession should officially be over sometime around the year 3MM (about when Xenu will come back to the planet Earth to set off some more volcanoes and elevate disciple Laura Prepon to sainthood) as long as the birth rate also slows down due to the increased number of headaches caused by not having any money.  Luckily, the number beat analyst guesses of 40k expected new jobs added according to Reuters, or 30k expected new jobs added according to Bloomberg, or a make believe number of new jobs added according to Money McBags.

    Internationally, China seems to be getting a bit more concerned with their housing market as prices are rising faster than Sofia Vergara's son's popularity on take your mom to school day.  Apparently the Chinese government wants regulators to give banks a new stress test where in the first part regulators will gauge the impact on bank balance sheets of 50% to 60% home price declines in some cities and in the second part, banks will have to run on a treadmill for 10 minutes while listening to Nancy Sinatra songs and having strobed pictures of Lady Gaga flashed at them.  With prices already beginning to moderate, Money McBags is glad that the Chinese government is being a bit proactive here, though it was their initial pro-activity by lending money to any Tom, Dick, or Harry Wang that started this whole mess.  The point is China has been bubbling for quite a while, but the global economy needs that growth right now more than a keynesian economist needs a deficit or Roger Ebert needs a jaw, so Money McBags is happy to look the other way for a minute or two while China tries to figure shit out.

    In the market today, WFMI sold off like a carton of spoiled soy milk despite beating analyst guesses...READ MUCH MORE...ANALYSIS of SMCI....AND NOTE THE NEW URL....

    Disclosure: No Positions
    Stocks: WFM, SMCI, PCLN
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