Wednesday, June 02, 2010

No worries, they found the extension cord and plug the autobots back in

The market had an upward bias today on the heels of the Japanese Prime Minister's resignation. Remember Japanese turmoil weakens the Yen which strengthens the Euro, weakens the US $ and that pushes up stocks.

Everyone is grasping at straws for a rational behind the big run up in stocks today (many articles sighted news on housing that came out early in the morning) when the reality is that 1100 is an important number for the S&P500 and that's right where they took the market on low volume.

Housing: The housing data was slightly better than expected based on demand pulled forward to take advantage of the first time home buyer tax credit. I'd caution however that there is a fair amount of anecdotal evidence that many buyers submitted multiple bids on multiple houses with the intention of only closing on 1 deal. This could lead to many busted deals in coming months. Oh, and we can already write next month's headline "Pending Home Sales Plummet by a Record Amount".

Jobs: If the market can hold these levels it could be "To the moon Alice" come Friday with the jobs numbers. I've seen some good updates that show we probably added close to 500k census jobs in May. Couple that with the recently resurgent Birth/Death numbers (running close to 200k last month) and guess what? The BLS could publish a 700k jobs number on Friday without the economy adding a single "real" job. That would be a blowout number.

Weird news of the day:

Not that Ohio was ever really on my "places to live" list, but this ruling which allows cops to ticket you for "appearing" to be going too fast probably took them out of contention for good. On a side note, how about speed traps set up with 2-4 police officers on both sides of our 2 stoplight town for most of the day today?

Just in case you wondered why California is broke - They spent $175k moving a bush 1 mile down the road.

"$140,000 to dig up and move the shrub, and $35,000 for "support" services from geological, botanical and climate experts in preparation for its new home in the Presidio less than a mile away."Check Spelling


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