Car Sales Soar, Construction Spending Roars, Stocks Rock Higher

Construction spending rose to the highest level since 2007. Auto sales were up 20%+, across the board. The economy appears to be doing just fine.

U.S. construction spending surged in January to the highest level since 2007, in the latest indication that the economy was regaining momentum after slowing in the fourth quarter.

Construction spending increased 1.5 percent to $1.14 trillion, the highest level since October 2007, as both private and public outlays rose, the Commerce Department said on Tuesday. That followed an upwardly revised 0.6 percent increase in December, previously reported as a 0.1 percent gain.

Economists polled by Reuters had forecast construction spending rising 0.4 percent in January. Construction outlays were up 10.4 percent from a year ago.

As such, the Nasdaq and all of the broader indices are moving higher, quite aggressively.

Everything but VRX and TWTR, of course.

I have to admit that I am surprised by this effort. For bulls, this isn’t exactly ideal, to have such strong economic data ahead of the March Fed meeting. It’s quite possible the Fed will move to hike rates, stymie the markets vertical move and ravage your portfolios, wholesale, all for the sake of normalization.

Nevertheless, it is a good rally, born from the right stuff. If it weren’t for the Fed, I’d be a lot more optimistic about the markets chances for a sustained rally. Even so, it appears that my outlook of rallying through April might begin to gain traction.

As for me, I am 75% cash, 25% TLT, waiting for an oversold market to take advantage of. This is a new beginning and methodology for me, one that has, thus far, provided me with peace of mind that cannot be replaced by moronic trading that was likely to give me a heart attack.

Let this post serve as a succor to all of you bearshitters out there who are getting lit up this morning, as the Dow and Nascrack careen to new highs.

In a BBG interview this morning, former Fed Chief, Alan Greenspan was talking shit. He doesn’t like China, not one bit. In addition to that, he’s super pessimistic about Dodd-Frank and everything else, due to entitlement programs. Apparently, the cold hearted Greenspan isn’t a fan of wanton corruption and waste via welfare programs.

Please recall it was Mr. Greenspan who presided over the fucking housing debacle, which led to the financial crisis–thanks to his insane Fed policy of hiking rates 16 consecutive times.

You’ll want to pay attention to this. Here in America you think a refugee crisis means some Mexicans sneaking across the border to cut someone’s lawn or work in construction. Over in Europe, they mean to disrupt the very fabric of society.

Germany’s Chancellor warns of this eventuality if this isn’t checked.

“If we disintegrate into small countries again, a common currency will be very difficult,” Merkel said at a party rally late Monday in the western German town of Volkmarsen. “What we are seeing in recent days, with certain countries going their own way to the detriment of another country like Greece — that isn’t the European way.”

Members of the EU will be meeting with the leader of Turkey next week, likely to bribe him into keeping the savage at bay.

This is not a great revelation. Anyone with a mind for finance could clearly see the force by which deflationary pressure have been ravaging throughout the globe. Finally, some of the Fed heads have taken notice and have been easing back on their injurious rhetoric.

“On balance, I am somewhat less confident than I was before,” Dudley said in remarks prepared for a speech Tuesday in the Chinese city of Hangzhou. “Partly, this reflects my assessment that uncertainty to the outlook has increased and that downside risks have crept up.”

“At this moment, I judge that the balance of risks to my growth and inflation outlooks may be starting to tilt slightly to the downside,” Dudley said. “The recent tightening of financial market conditions could have a greater negative impact on the U.S. economy should this tightening prove persistent.”

“Tighter financial conditions abroad do spill back into the U.S. economy, and policy makers must take this into account in their assessment of appropriate monetary policy,” he said. “Of course, this does not mean that we will let market volatility dictate our policy stance. There is no such a thing as a ‘Fed put.’ What we care about is the country’s growth and inflation prospects, and we take financial market developments into consideration only to the extent that they affect the economic outlook.”

This, of course, will lend to the prevailing notion that the Fed will stand down during the March meeting, perhaps even offering succor to those in need of conciliatory dovish Fed jargon.

You know your industry is entirely fucked when a -0.1% revenue cut is considered momentum and good news for the sector.

While still weak, this number represents a sharp gain, compared to median estimates of -2%.

“Macau’s gaming revenue picked up strong momentum since the latter part of the Chinese New Year holiday, despite a somewhat slow start in the beginning,” Sanford C. Bernstein analyst Vitaly Umansky said in a note before the data. Despite continuing volatility, he expects long-term growth for the industry as it shifts focus from high-rolling gamblers to mass market patrons.

This news is very likely to provide succor to casino stocks, especially WYNN.

Both Greenlight and Pershing shed about 20% in 2015. One fund manager learned from his sins and corrected (extra Delbert Grady) his ways, while the other, wantonly, and aggressively, Eddie Barzoon’d himself–barreling down Wall Street like a fucking errant bowling ball to the tune of a negative 21 odd percent drubbing.

This evening, in an email sent out to clients, Einhorn’s Greenlight capital reported it was up another 1.9% in February, putting it ahead by 3.3% for the year. Gains were most abundantly found in his KORS and M positions, as well as his shorts in ‘bubble’ stocks as well as his long position in gold.

On the other side of the mountain is a certain Mr. William Albert Ackman, currently under siege in an enormous bet gone wrong in VRX, as well as his HLF position careening upwards–exacerbating losses ranging to and from 18-23%.