As usual, the headline is misleading.

"Aug. 26 (Bloomberg) -- New-home sales in the U.S. improved in July from a 17-year low and construction cutbacks by builders reduced the glut of properties on the market by the most in almost five decades."

Truth: Last month's sales were revised down to 503 from 530.

515 - 503 = 12

But 515 - 530 = -15

So if you actually report based on the original releases, new home sales were negative from the previous report.

Now to be fair, the Bloomberg article cited did show the revised number and the truth - in the second paragraph.

But the headline is false. In truth it is "New Home sales continued to decline from already abysmal levels reported last month."

This sort of nonsense is found in all sorts of economic reporting, and is a big part of where the "pumps" come from in the market.

The problem with this sort of "reporting" is that it is intentionally - and catastrophically (if you listen to it) dishonest.

What does this mean for you as an investor? It means you have to read the entire data release, and keep the previous ones around so you can detect this sort of "gaming of the reporting", lest you gain a flawed belief of what is going on with the macro economic picture.

More and more vacancies in malls and shopping centers with the chains closing beaucoup stores, and mom and pop being reluctant to start up a business nowadays.

Also many mom and pops borrowed on the house to finance the start-up small business, and that resource is not as viable nowadays.

If the malls go, the baths the financial institutions will take will make the housing market debacle seem to be a prelude to a "real" problem.

Buyers opportunity!

Only a fool tries to catch a falling knife.