The market melted up to a four month high today as technical levels were tripped after investors dropped some funny looking mushrooms in to the market's salad, President Obama had an hour long town hall on CNBC where he assured investors that his administrations' actions have stabilized the markets (though as always, it depends on what one's definition of "stabilized" is), and according to NBER (the less radical, and slightly more refined wing of NAMBLA) the recession is not only officially over but it has been over since June of 2009. So party fucking on my friends, party on.
You should all go out and lever up your houses (what, you can't get a HELOC because your mortgage is more upside down than a lovely young lady practicing the very difficult standing 69?), load up the remains of your 401k (you know what's left over from the crash and from having to tap in to it to buy necessities such as food, clothing, and Kim Kardashian Playboy issue) in to a nice triple long financial ETF like FAS, and cruise over to your local Bugatti dealer and trade in your beat up Schwinn 3-speed for a Veyron because the recession ended over a year ago so you have some profligate spending to do to catch up. Most importantly, feel free to call up one of the 20MM unemployed people and tell them they are simply being a bunch of lazy asshats with all of their crying about "no one is hiring" this and "they say my skills are eroding" that because why would NBER lie? Come on people, when was the last time a group of economists were wrong about anything (and the recent global financial collapse doesn't count)? Anyway, now that the NBER has finally ruled that the recession ended months ago, Money McBags eagerly awaits them to let us know when the depression will be over (and Money McBags wrote that line before toggling over to Zerohedge and seeing they wrote just about the exact same thing, so it is what it is).
The only real macro news today was that despite the recession having ended 15 months ago, homebuilder sentiment remains worse than the US' intelligence about Iraq's WMDs or a Mike Tyson love poem ("You have a great smile, and big titties too, I won't eat your kids, or even rape you. Well, unless you say no. You hear that bitch?"). The homebuilder sentiment index remains at a low of 13 with anything under 50 meaning sentiment is poor and anything under 20 meaning sentiment is Randy Quaid poor. More interestingly, 87% of the responders said foreclosures are negatively affecting the market while the other 13% didn't say anything since they were too busy licking the windows of their short bus.
Despite the negative homebuilder sentiment, homebuilders actually led the market up on the strength of LEN posting a better than guessed at quarter where they saw orders drop by only 15%, So woo fucking hoo, business is only getting a shitload worse and not a fuckload worse. After stripping out tax effects, insurance recoveries, and common sense, LEN earned ~$.07 per share which bested street guesses by $.01 and was enough to send the stock up 9% allowing shorts more room to make profit.
DFS also charged their way to a decent Q with earnings beating guesses and charge-offs...READ MORE...
Disclosure: No Positions