Best of the Web Tuesday July 27, 2010

Day Two went a bit better, no real drama with the kitchen! It seems impossible that the room will ever be back together, but I guess everyone feels that way.

Looking to Open Positions
I have done a bit of homework using my proprietary trading system (my mind) and I think I will be opening up some positions in the following as I have not made any trades this year so far:
-Hormel (HRL)
-McDonald's (MCD)
-Budweiser/Inbev (BUD)

All three are showing clear ability to still get people's money for their products and the charts are favorable as well for the medium/long term trade (3 month-9 months). I will update with stops, buy prices and the rest of it if I can get it done.

Best of the Web Tuesday July 27, 2010
Today's must read comes from Housing Wire's Paul Jackson who pens:
The New Math Surrounding HAMP Doesn't Add Up
You will have to read this to believe it but here is the set up:

At HW, we chose not to run with the HAMP redefault numbers except to note that Treasury officials had added them into the latest report card. And this choice was made with purpose: we knew these numbers were fake. Nobody gets a 1.7% redefault rate 6 months after modification –- not even Uncle Sam — and any media outlet reporting that number with a straight face quite simply doesn't understand the industry it's covering.

The only way to come up with a 1.7% redefault rate is to change how redefaults are calculated. And that, dear readers, is precisely what our government did.

This should be a scandal and called out, but I don't think it will even make the Sunday paper. Hat's off to Housing Wire for the catch.

Have a good night.