Bad Data

As traders came into Thursday’s open and then shortly thereafter, they were deluged with bad data.  Whether it was from the US, Asia, or Europe – the economic data was in a word: horrible.

Because of this bad data the US indices opened lower.  Yes, a lower open is shocking, but that didn’t last long.  Although the ensuing waves of bad news hadn’t even reached shore yet, the markets just kept creeping higher until they were positive.  And why not – right; the poo-bah of all central planners, Ben Bernanke, has said QEternity is here to stay.

So what was the bad news?  Let’s have a look…

Last Thursday’s weekly jobless claims data was revised higher than originally reported, as usual, which was actually 18,000 claims WORSE than the Bureau if Lies & Statistics (BLS) initially claimed.
The morning’s data was supposed to be a 373,000 claim, but was much worse at 382,000.
BofA will be firing 16,000 employees soon.
FedEx and UPS warn of global economic slowdown affecting their businesses.
China flash PMI shows that its “growth” is contracting for the eleventh month in a row! The bad data print of 47.8 is below 50.0, which is the level that delineates growth or contraction.
Composite European PMI was horrible with a print of 45.9, down from 46.3. This is so far below 50.0 that it can only be called recessionary.
The Bank of Japan launches ANOTHER “stimulus” program that has the staying power, or effects over the market, of just a few hours. 100% of the gains the BoJ was trying to buy were wiped out in a matter of hours. Epic FAIL!
The Philly Fed report was better than expected; however, it had a negative print (read: bearish) again at -1.9. This was the fifth consecutive negative print.
Italy will surely need a bailout after Spain. Italy revised 2012 GDP to -2.4% from -1.2% and revised next year’s GDP to -0.2% (too optimistic I’m sure) from growth of +0.5%. Of course, it’s debt-to-GDP ratio and annual deficits are rising sharply.

But hey, there were no worries on Fraud Street. The markets slowly rallied all day as Hopium trumped reality.

QEternity, indeed.

Trade well and follow the trend, not the so-called “experts.”

Behold the age of infinite moral hazard! On April 2nd, 2009 CONgress forced FASB to suspend rule 157 in favor of deceitful accounting for the TBTF banking mafia.

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