Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

9/15/10 Midevening Report: S&P hits 5 week high even as macro data tries to hold an intervention

|Includes: AABA, Digital Generation, Inc. (DGIT), KIRK, MA

The market was up again today as Europe remains solvent and investors ignore macro data and instead focus on how they can become race car drivers.  In economic news, production in the US slowed as automakers held back on churning out new cars due to a little something called a consumer fucking recession.  Not only did production slow, but last month's number was revised down from 1% to .6% growth in the government's consistent "hold the shock and hope for no awe strategy" which is surprisingly more effective than their "hey look, it's Enrico Palazzo" strategy or simply telling the truth. 


In addition to production across the US slowing, the Fed's Empire State business survey unexpectedly dropped further than Abe Vigoda's ball sac after taking off his depends.  The survey showed general business conditions slipped to 4.14 (whatever the fuck that means) while analysts had guessed the number would come in at 8 but at least they were ordinally correct as 4 and 8 are both numbers (though the poor guy who guessed the survey would come in as "a" will certainly need to fix his regression model).

In other US macro news, the real estate market remains weaker than Gary Coleman's kidneys and sell side research as new mortgage applications dropped to their lowest level in over a year as a result of frictional unemployment becoming more non-existent than acting in the best interest of clients at Goldman, the new home buyers government tax subsidy having ended months ago, and more mortgages being underwater than on the fictional island of Atlantis.  Even with rates at record lows, there are still fewer buyers than there are straight Wiggles or giffen goods which means prices are going to have to continue to tumble to somewhere between $0 and foreclosure before the housing market once again becomes liquid (and if it is going to become liquid again, Money McBags would suggest it become a nice Jack Daniels or perhaps a refreshing peppermint schnapps).  With home equity loans having been one of the engines that fueled economic growth in to the bubble and allowed people who couldn't otherwise afford it to buy such necessities as 60 inch flat screen TVs, Hummers, and diamond encrusted gold teef (because really, your teef deserve it), the inability of home owners to tap in to these lines of credit with their upside down mortgages and lowered home values will continue to weigh on the recovery.  With shadow of inventory of somewhere between 8MM and every fucking house in the country looming, home prices will continue to feel more pressure than Ricky Martin's colon on a Saturday night so it's no wonder that the market keeps rallying (and yes that was sarcasm).

Internationally, Japan tried to weaken the yen by slipping it some roofies and telling it it doesn't love it anymore.  With the yen at a 15 year high against the dollar, Japan's central bank is furiously buying US currency in order to help Japanese exports and to try finally get that 50th state quarter for which it has been looking.  In other international news, the European commission was out with rules aimed at stabilizing the markets (other than closing them down, barring HFTs, and telling Goldman Sachs to go fuck themselves).  The new rules include giving regulators the ability to ban naked short selling (which is fine as long as those...READ MORE...

Disclosure: No Positions