Garbage In,

Garbage out!

WCI Communities Inc., a Florida homebuilder, reported its fifth straight quarterly loss on March 17. The company's cancellation rate was 110 percent in the period and new orders dropped more than 300 percent because of ``defaults'' on sales contracts. (Bloomberg)

How can new orders drop more than 100%? Because the cancellations aren't counted correctly.

With GS and LEH beating estimates, my strategy of waiting for earnings to come out has backfired. However, I do have some ammo. Homebuilders continue to have more strength than I believe they should. The fundamentals are still getting worse. I will probably short TOL later today. Also, retail is bouncing nicely. However, producer prices came in at 0.4% for February. The crack-up-boom will continue to hammer consumer spending. Time to short DECK.