A fund manager of my acquaintance — who has been short and is just killing it lately — writes in:
bounced around on Tuesday but were decidedly down at midday, as investors
weighed a strong report on the manufacturing industry against concerns
about pricey oil and ailing banks. (emphasis added).
Cramer liked that report too, said it provided evidence that
we’re not going into a recession.
Do these people read the
reports? New orders, down. Employment, down. Backlog,
down. Inventories, up. Prices paid, at a multi-year record.
Money quote from the ISM bossman: “When viewed from the
manufacturer’s perspective, they are experiencing higher prices for their
inputs while demand for their products is slowing.’
I was going to take apart ISM (a/k/a Chicago Survey of Purchasing Managers, or PMI) this morning, but Mike did such a good job, there’s no need for me to even bother:
ISM is up, but it isn’t good new
Automakers Worst Month Since 1992