• "One last thing."  -- Lt Columbo

I gave my two bits in Columnist Conversation on the weak action this afternoon.

Here is Morgan Stanley's Peter Boockvar's interpretation of the market today:

Whether it was the spike in oil or sharp midday selloff in Portuguese bonds or 3.2% drop in the Greek stock market on behavioral concerns with the troika, lost in the sauce is a 4% decline in the Brazilian Bovespa that is now trading at the lowest level since April 2009. Industrial production, out this morning fell 2% m/o/m, about twice expectations which is leading to recession concerns in this once emerging market darling. It also hasn't just been in Turkey, Egypt and parts of Europe that have had their protests, Brazil has too over the past few weeks due to disgust with leadership. In sympathy today, the Mexican market is down almost 1% (after the previous 5 day spike) and Chile is lower by 2% as growth slows throughout Latin America. HSBC today cut GDP estimates in Brazil, Chile, Peru, Uruguay, and Venezuela, countries all dependent on the commodity trade. Combine this with the slowdown in China, recession in Europe, less than 2% GDP growth in the US and a peak in profit margins at the same time the Fed is getting stuck with an overgrown balance sheet and wants to slow its growth and the result is we will have a very bumpy market road continuing throughout the summer.

• Thanks for reading my diary and enjoy the evening.

I have a 3:30 p.m. EDT conference call with a company I am researching and won't be back for the rest of the day.

Thanks for reading my diary and enjoy the evening.

And congrats to my son, Noah, who just returned from his honeymoon!

• I am taking in this morning's tranche.

Housekeeping item: I am now taking in this morning's SPDR S&P 500 ETF Trust (SPY) short at $160.70, which was executed above $162 a few hours ago.

I am keeping my core SPY short, however.

• This morning's lagging Russell might have presaged this afternoon's general market weakness.

With the benefit of hindsight, the laggingRussell 2000 this morning might have been a general market tell that presaged this afternoon's weakness.

• Action is feeling similar to yesterday's late swoon.

I am sticking with the add on to my S&P SPDR (SPY) short done earlier in the morning.

• Here are some midday observations from Sir Arthur Cashin:

Sorry for the delay. Had several tours.

Early trading dictated by dollar moves. Strong dollar and Europe held opening back. As dollar softened a bit, stocks lifted. Bulls still restrained by 1624/1626 in the S&P.

Run rate slower again. 1:00 projects to 590/670.

• It misses its first shot at 1624.

The first try at 1624 failed ... thus far.

• The global economy has never been more dependent on low interest rates.

"Fast Money's" panelists are universally bullish on stocks in the face of a possible rise in interest rates, principally based on historical data.

I disagree, respectfully, as the global economy has never been more dependent on (and, arguably, addicted to) low interest rates.

As I wrote in "Beware the Interest Rate Cliff," it is different this time.

• My largest long is Monitise, and my largest short is IWM.

Largest long: Monitise (MONI.L).

Largest short: iShares Russelll 2000 Index Fund (IWM).

• Let's do a deep dive on today's factory orders release.

This one has some weight, as it follows a weak June ISM manufacturing report yesterday and an inconsistent picture from the regional manufacturing indices.

May factory orders were +2.1% compared to expectations for 2% and +1.3% in April.

Under the hood, May durable goods orders were strong at +3.7%, core capital expenditure orders (taking away defense and aircraft) were revised to +1.5% (from initial report of +1.1%), and core shipments growth was revised from +1.7% to +1.9%.

Nondurable goods orders rose by +0.7% in May -- that was the first gain in a quarter.

The manufacturing inventory-to-sales ratio dropped modestly in May, which has led Goldman Sachs to slightly reduce its real GDP forecast for second quarter 2013 to a tepid +1.7%.

• I've been busy today.

Today's doings:

• I just added to my SPDR S&P 500 ETF Trust (SPY) short at $162.06.
• I am expanding my Prudential (PRU), MetLife (MET) and Lincoln National (LNC) shorts now.
• I added to my Monitise (MONI.L) and ProShares UltraShort Russell2000 (TWM) longs.
• I reentered a Danaher (DHR) short at $64.69.

• Kind of strange.

The S&P 500 and Nasdaq are both outperforming the Russell 2000, which is kind of strange.

• Shares are strongly higher after positive comments from Piper Jaffray.

Yesterday, I initiated a long in Altisource Residential (RESI) and placed the shares on my "Best Ideas" stock List.

Shares strongly higher after positve comments from Piper this morning.

I wouldn't chase nor would I sell.

I would sit tight!

• Here's a test.

Let's see if 1624 on the S&P 500 is resistance.

• Mark Hanson discusses the continuation of shady real estate financing.

More pearls of real estate wisdom from maven Mark Hanson:

7-1 No Doc / NINJA refi's are back beginning July 1

There are 54 million mortgage's on single family houses in the US. And over 10 MILLION of them -- that should have been extinguished giving the homeowners the opportunity to de-lever, raise capital, and eventually become boomerang buyers -- have been "tampered" with under the guise of "helping homeowners" since 2009. (Note, this is where the lions' share of the missing housing "inventory" went. Moreover, these millions of 'underwater, over-levered, renters of their own house' are no longer part of the macro housing demand pool; a structural deformity in the US housing market equation nobody respects).

People say "banks aren't lending".  That's hogwash.  Banks have created hundreds of billions in "new-vintage, higher-leverage, riskier-than-Subprime/Alt-A loans" (aka: loan mods) so exotic they would make Angelo Mozillo blush. In fact, of the 6 Million+ mods/workouts that stuck (of the 10 million+ "tamperings") banks were responsible for 80% under their various "proprietary" loan mod programs.  By contrast, the gov't HAMP program was of little benefit in the grand scheme of legacy, distressed borrower "re-leveraging".

These bank "proprietary" mods -- not really "mods", rather just refi's for people who can't otherwise refi -- enabled banks to avoid foreclosures, bring bank loss reserves as income, andpreserve millions and millions of worthless portfolio HELOCs and Second liens that would have ripped huge holes in balance sheets if foreclosures were allowed to continue unabated.

An important reminder on HELOCS...beginning this year is a WAVE of HELOC hard-recasting(that peaks out in 2015/16) when between 12 and 15 million HELOCs will go from easy interest-only payments to hard-core fully amortizing loans that pay off in 10 to 15 years. This will increase the monthly payment on the typical $80k loan by 200% to 300% over a single month based on today's rates.

There is something terribly wrong with a system in which a perfect credit borrower gets a 4.5%, 30-year fixed mortgage rate today...and the most serious proctology exam of their lives during the underwriting process.  And a delinquent, underwater, over-levered, renter in their own home gets a 2% interest only loan with 65% average debt-to-income ratios...with no qualification or appraisal necessary;  just make 3 payments on time and you get a loan!

Highlights of the new NO-DOC / NINJA Refi ("Streamlined Modification Initiative")

- Beginning July 1, loans guaranteed or owned by Fannie Mae and Freddie Mac -- that are over 90-days past due -- are eligible for high-leverage loan "mods" simply if the homeowner shows a willingness and ability to make three on-time trial payments. (After not making payments for years, I am sure most have saved up a few month "rent".  That's of course unless they all spent it on new Ford trucks, BMW's, and various high-end consumer goods and electronics)

- All eligible borrowers have to do is make three on-time trial payments, the FHFA said. Once those payments are made, the loan modification takes permanent effect.

- Previously required document collection practices and extensive evaluations are no longer required, giving servicers the ability to execute the trial periods faster.

- Proof of distress is no longer initially required

Bottom line:  I constantly harp on the structural deformities of the US housing market due to negative equity;  "effective" negative equity;  insufficient income/credit needed to get a mortgage loan;  and millions of loan mods that have significantly and permanently altered the supply/demand dynamics of the US housing market by "killing off" all these potential repeat buyers who historically have controlled the market.

This housing market will never have a chance of a "escape velocity" or a "durable" recovery with over 50% of all mortgage'd homeowners existing as underwater, over-levered, Zombie renters of their own house.  As such, if not for the never-ending QE and yield chase trade that kicked off in earnest in 2011 forcing into the housing market new-era buy and rent/flip "investors" we would still be in a housing market depression. In other words, based on the historic fundamentals that drive long-term housing market expansion -- that's ex the QE inspired PE firm investor "trade" -- conditions are more conducive to contraction than growth.

• I am buying more shares at $17.37.

I am adding to my ProShares UltraShort Russell2000 (TWM) long at $17.37.

• Run, don't walk, to read the latest musings from Steve Reynolds.

I have previously highlighted the investment commentary of iconic investment figure Steve Reynolds.

His latest musings discuss a longer-term market view (along with a good musical backdrop!).

• It has potential to be our next home run.

Yesterday Monitise (MONI.L) reported an important alliance with Telefónica Digital. Here are several follow-up stories in the press (thanks to techbanker in our comments section!).

The shares, though rallying by nearly 5% yesterday, have responded less ebulliently than I think is justified.

Monitise remains a potentially leading disruptive factor in the mobile payments industry.

While I recognize, as a virtual startup a few years ago, it's awfully hard to value, Monitise's shares are only trading at about 3.5x forward sales. Revenue is expected to grow in excess of a 100% rate of growth in each of the next few years.

The Telefónica deal is potentially massive, placing Telefónica's total mobile payments strategy with Monitise. Revenue from the joint venture is guaranteed, and transactional sales, in which Monitise gets a piece of the action beyond a threshold rate, could be sizeable on top of it.

Earlier in the year, Telefónica had previously announced joint ventures with two of the largest Spanish banks. One would think that the next alliance reported by Monitise will be with those banks.

To this observer, the Telefónica announcement is validation of Monitise's strategy and leadership role in a space that possesses a truly outstanding future of growth.

I plan to add to this core holding further.

In an otherwise fairly to overvalued market, Monitise is undervalued.

Indeed, it could follow Altisource Asset Management (AAMC) as our next home run.

• Piper Jaffray reitierates its Buy rating on Altisource Residential.

Yesterday, I highlightedAltisource Residential (RESI), an Altisource Portfolio Solutions (ASPS) spinout, and put the shares on my "Best Ideas" stock list.

This morning Piper reiterated its Buy rating on the stock with a $24-a-share price target. Piper's estimates for 2014 and 2015 EPS are $1.38 and $1.548, respectively, supportive of a strong cash dividend payment.

• Let's take a peek at overnight and early-morning price action in several important asset classes.

Mixed around the globe:

• S&P futures +5;
• Nikkei + (+7% in last four trading days);
• European markets -;
• euro -;
• crude flat;
• gold +3; and
• the 10-year U.S. note yields 2.46%.

Worth mentioning:

• Stocks climbed robustly at the get-go but sold off hard as the afternoon progressed.
• Monday's gain approximated last Friday's loss in a market without memory from day to day.
• The S&P's 500 50-day simple moving average is at 1624 -- thus far, it has provided resistance.
• $80 billion was pulled from bond funds in June. I remain long iShares Barclays 20+ Year Treasury Bond Fund (TLT) based on the expectation of slowing global economic growth and the anticipation of lower interest rates. As discussed in Columnist Conversation, I expect yield hounds (and post-baby boomers) to grab depressed bonds, in the fullness of time.
• All is not right in France.
• New York Fed President Dudley speaks at 12:30 p.m. EDT today. 

In the press:

• From Dealbook, the essential summer Wall Street reading list, and Pimco tries to reassure investors.
• President Obama will likely approve Keystone.
• Corker/Warner housing reform won't work.
• Inside liquidity snafu in China.
• Greece's reform moves remain problematic.
• Martin Feldstein says taper now. And Marty Feldman says, "What hump?"

Expected economic data (with estimates in parentheses):

• factory orders (2.0%);
• IBD Economic Optimism (50); and
• domestic vehicle ssales (12.05 million).