• Enjoy the weekend and thanks so much for reading my diary.

Before I leave for the weekend, I want to distill my negative market view into two sentences.

1. Arguably, the global stock markets continue to be materially sourced in central bank policy rather than economic fundamentals.
2. All traders and investors should be cognizant that the a market that has disconnected from econoimnic fundamentals is vulnerable to a change in sentiment and/or an exogenous shock.

Enjoy the weekend and thanks so much for reading my diary.

And God bless Uncle Vinnie.

• Let's review.

My look back at the week borrows its title from a popular 1960s BBC comedy show hosted by David Frost.

We're going to shake things up a bit going forward to include not just highlights from my diary but also some of the more scintillating columns from my Real Money and Real Money Pro colleagues.

It was a very research-heavy week for me, which was perhaps foreshadowed by my fair market value update analysis performed over the weekend and published in my diary on Monday. In between research calls, however, I managed to make a few trades here and there -- prematurely covering last Friday's Bank of America (BAC) short on Monday, an in-and-out losing short bet in Apple (AAPL), adds to my Potash (POT) long and SPDR S&P 500 ETF Trust (SPY) short, and an initiation in (and subsequent adds to) a ProShares UltraShort 20+ Year Treasury (TBT) long -- but I'm still chasing that ever-elusive home run.

OK, enough about me. In case you missed them, below is my top 10 list of this week's columns from other contributors to our sites that I found to be especially insightful and/or value-added:

1. "Getting Time on Your Side" by Bobby Lang
2. "Abandon All Hope" by Tim "Not Phil or Judy" Collins
3. "Myth-Busting the Dollar" by Ed Ponsi "Scheme"
4. "Sticking With the Long-Term QE Thesis" by Tom "Lord Baltimore" Graff
5. "Playing the Shale Craze" by "Dandy: Dan Dicker.
6. "The Importance of Expectations" by Jim "El Capitan" Cramer
7. "Don't Miss the Petroleum Railcar Story" by Chris "Not the Designer" Versace.
8. Thursday's edition of "Off the Charts" by "Beam Me Up" Scotty Redler.
9. "You're Investing, Not Running the Company" by Jim "El Capitan" Cramer
10. "Earnings Season Is Like a Box of Chocolates" by Tim "Not Phil or Judy" Collins

And that was the week that was.

• I purchased more shares at $31.05.

I added further to Potash (POT) at $31.05.

• Run, don't walk, to read Jim Cramer's latest missive.

Run, don't walk, to read Jim "El Capitan" Cramer's latest missive, "You're Investing, Not Running the Company."

Jim is a master of market psychology and is often blunt in his observations (both in his writings here on TheStreet and in his books) -- that reality trip he delivers make us better investors.

Investing is not a theoretical exercise and in this column Jim helps to explain why.

• I am taking advatage of the bond yield increase.

Bond yields are risng a bit, and I am using the opportunity to add to ProShares UltraShort 20+ Year Treasury (TBT) under $72 now.

• Here is his summary.

Below is the summary of the most important macroeconomic announcments made during the week from The Lindsey Group's Peter Boockvar.

Positives

1)In Fed We Trust (to lift asset prices) sends stocks to another record as bears vanish. II measures bears at lowest of the year and AAII said individuals are the least bearish since January 2012.

2)Notwithstanding government shutdown, Richmond (region most sensitive to it) manufacturing survey holds steady at +1 vs 0 in September.

3)Delayed and now dated August data but construction spending up a bit more than expected and the trade deficit holds steady but in line so doesn't alter Q3 GDP estimate.

4)UK economy sees best growth in Q3 since 2010 with an annualized gain of 3.2%.

5)Bank of Spain said Spain will escape 9 straight quarters of contraction with a .1% q/o/q GDP gain in Q3.

6)French business confidence rises 1 pt to 98, in line but matches the best since March '12 in spite of economic policy, not because of it.

7)HSBC preliminary China manufacturing PMI in October rises to 7 month high at 50.9.

8)BoJ getting what it wants in higher inflation as CPI rises 1.1% y/o/y, the most since November '08. CPI ex food and fuel was flat and thus not contracting for the 1st time since December '08. Wage growth is crucial from here on out. Nikkei has 2nd worst week since August with yen up on week and pressure on for visible results of 3rd arrow.

Negatives

1)September payrolls grow just 148k of which only 126k came from the private sector. Average hourly earnings up just .1% m/o/m and the participation rate holds at the lowest since the late 1970's. The unemployment rate does fall to 7.2% as the household survey adds more jobs than the increase in the labor force.

2)Durable goods orders in September ex transports were weak with core orders down 1.1% bringing the absolute dollar level to the lowest since March. This important piece of the recovery is still missing.

3)While early in its existence, Markit PMI for the US falls to a 12 month low at 51.1 vs 52.8. It's an October figure reflecting the shutdown and Markit claims high correlation to ISM.

4)Initial Jobless Claims total 350k, 10k more than expected but down from 362k last week. Data still distorted by CA and furloughed private sector workers.

5)October UoM lack of confidence index falls to lowest of the year at 73.2, down 2 pts from the preliminary pre government deal print and below 77.5 seen in September. No lift from government deal and those surveyed apparently don't own stocks (no wealth effect here).

6)Existing home sales in September (likely June thru August contract signings when rates were moving up) totaled 5.29mm vs 5.39mm in August. Months' supply up to 5.0 from 4.9. Cash buyers remain dominant, 1st time home buyers remain scant.

7)August TIC data shows another month of foreign selling of US Treasury notes and bonds of $10.8b bringing year to date net selling of over $20b. I'm sure this selling picks up after what our foreign friends saw in DC in October. $ index closes week just shy of lowest since October 2012.

8)MBA said refi apps fell 1.3% after 5 weeks of gains and purchase apps were up just .7% after falling to the lowest of the year last week.

9)Anyone delusional enough to expect a budget grand bargain in coming months won't get it as tinkering with the sequester is likely the most we will get from the warring parties. At least the government won't shutdown again.

10)China takes another crack at excessive credit growth by drawing funds from money markets sending 7 day repo rate up 150 bps on the week. Shanghai index has its worst week since June and closes at 7 week low.

11)Both exports and imports in September for Japan rise less than expected.

12)EU services and manufacturing composite index moderates .7 pts off highest since June '11.

• Here are his musings at midday.

Midday musings from Sir Arthur Cashin:

Carnage in Asia (China/Japan) spilled over into several European markets.  U.S. markets were protected by strong Nasdaq (Amazon, Microsoft, et al.). That influenced the Dow and S&P higher.  Around 11:30, air started leaking out of Nasdaq, leading others to fade.

Run rate at noon projects to NYSE final 590/670 million.

Going radio silent at 1:30.  Wonder Woman on special mission.

• More data from the University of Michigan survey.

The final October reading of the University of Michigan measure of consumer confidence declined to 73.2, from a preliminary reading of 75.2 and from 77.5 in September. The drop was against expectations of a higher final reading, as stocks had rallied in the second half of the month after the shutdown ended and a default was avoided. Assessments of both current conditions and the outlook deteriorated from September, falling 2.7 point and 5.3 points, respectively. The latter, which is more correlated with spending, could signal weaker demand ahead. While consumers' views of current conditions had initially posted a slight gain in the preliminary October reading, these darkened in the final reading.

Survey administrators noted that the number of consumers who negatively mentioned the federal government was the highest in the survey's history. Thirty-seven percent of respondents noted unfavorable news on the government (long-term average = 6%). The overall index has retreated significantly from post-recession highs reached over the summer and now stands at its lowest point since December.

University of Michigan Survey of Consumer Confidence Sentiment

Source: Bloomberg

View Chart »View in New Window »

Separately, wholesale inventories posted a larger-than-expected rise of 0.5% month over month, while July's growth was revised up by a tenth to 0.2%. This boosts third-quarter GDP estimates. In any event, the equity market appears to be responding more to Fed policy rather than economics.

• Run, don't walk, to read Scott Redler's technical picks.

Here's a good summary of technical picks (longs and shorts) by "Beam Me Up" Scotty Redler.

• I purchased more shares at $72.15.

I added to my ProShares UltraShort 20+ Year Treasury (TBT) long today at $72.15.

• Run, don't walk, to read David Rosenberg'd latest missive.

A sign of the times -- David Rosenberg. 

• Yearly highs are within sight for Altisource Residential and Northwest Bancshares.

Altisource Residential (RESI) and Northwest Bancshares (NWBI) are a few pennies off of their yearly highs now.

A good thing.

I am moving into a research call now back in an hour.

• Mr. Market has been blowing through the warning signals lately.

As I mentioned yesterday, I was using Ford (F) as as market tell.

The poor reaction to a great earnings report coupled with continued underperformance of banks gives me market pause.

But these tells obviously have not been predictive of late!

• Namely, Potash and Citi.

I am bidding $31 for Potash (POT) and $50 for Citigroup (C) this morning.

• Courtesy of the University of Michigan.

The final October University of Michigan confidence figure, the first measure that partially (part of number measured pre-D.C. deal) captures the reopening of the government was 73.2, below the estimate of 75.0, down from the preliminary read of 75.2 and down from 77.5 in September. It's the weakest number of the year and was led by declines both in the current conditions component and the outlook. One-year inflation expectations were 3% vs. 3.3% in September and 3.0% in August. Gasoline prices are at nine-month lows.

Bottom line: Apparently, those being surveyed weren't encouraged by the government reopening and/or don't own stocks. (Clearly, the wealth effect is quite a specious economic policy.) It's lackluster wage and job growth that many are still concerned about.

• This beast continues to grow earnings and revenue.

I wanted to update Altisource Portfolio Solutions (ASPS) for those who are fortunate enough to still own this monster! (As I have often reminded myself, I mistakenly failed to reestablish my long position when the shares traded down to $70 months ago.)

Altisource reported a huge beat in revenue ($211 million, up 46% year over year) and profits (GAAP $1.42 a share, cash EPS $1.80 a share). Pretax margins leaped to 27%, leading to the earnings breakout, which was well above consensus).

The company repurchased 265,000 shares during the third quarter.

Over the next two quarters Altisource expects to board about 1,550 loans from Ocwen (OCN), mostly government-sponsored agency loans. The incremental fees earned on this (at a near-50% default servicing margin) coupled with other growth initiatives within the company and at Ocwen should produce revenue of $775 million in 2013 and $1.05 billion next year.

This will translate into approximately $6.20 a share in 2013 and over $10.25 a share in 2014.

The shares, which stood at around $15 a share in late 2009, now trade at near $150 -- adjusted for the Altisource Residential (RESI) and Altisource Asset Management (AAMC) spinouts, it trades over $200.

By any measure, the stock has been a home run, and I appropriately termed it the stock of the decade in my diary and in my annual surprise list.

Here is a segment from "Mad Money" in which Jim "El Capitan" Cramer endorsed the idea when the shares were in the low $20s. (Well done, Jimmy!)

• Durable goods, that is.

In a pre-shutdown measure of capital spending, September durable goods orders rose 3.7%, better than expectations of up 2.3%, but it was all aircraft as the ex-transportation components were weak. Orders ex-transports fell 0.1% vs. the estimate of up 0.5%, and August was revised down by 0.3%. The core capex component was down by 1.1%, well below the estimate of up 1%, and August was revised down to a gain of just 0.4% vs. the initial print of up 1.5%. Core shipments, which gets plugged into GDP, fell 0.2% vs. the forecasted rise of 1.1%. Within the report, non defense aircraft orders were up by 57.5%, a hugely volatile subsector. Orders for vehicles/parts, electrical equipment and machinery were all down. Computers/electronics orders were up by 0.6% following three months in a row of declines.

Bottom line: Orders ex-aircraft were soft, and while some may say this was due to fears of a government shutdown to come, I'm not sure CEOs thought the government would be stupid enough to do it. (I know, they should have.) Orders have been mediocre at best well into September. To quantify how we finished September, nondefense capital goods ex-aircraft (core capex) orders in dollar terms are at the lowest level since March, and we can only assume they fell further in October. The hoped-for 2013 renaissance in capital spending that many called for in the beginning of the year just didn't come to fruition and is a major missing leg to this recovery.

• Let's take a look at the overnight and early-morning price action in the major asset classes.

The rundown:

• S&P futures  are flat;
• Nasdaq futures are up 11;
• Nikkei is down 2.8% (Bank of Japan has a meeting next week and also will be publishing a new
• growth/inflation outlook, growing economic risks);
• China Shanghai is down 1.5% (China SHIBOR back in focus);
• European markets are mixed (EPS weak at Schneider, Electrolux, Kering);
• euro is up;
• crude is up $0.30;
• gold is down $11; and
• the 10-year U.S. note yields 2.52% (unchanged day over day).

Worth mentioning:

• Stocks broke back to the upside yesterday after Wednesday's uncharacteristic dip. A sales beat at Amazon (AMZN) and an earnings beat at Microsoft (MSFT) buoyed late Nasdaq trading. I daytraded Apple (AAPL) for a small loss on Thursday. I also expanded my SPDR S&P 500 ETF Trust (SPY) short, added to Potash (POT, dividend appears intact) and initiated a long ProShares UltraShort 20+ Year Treasury (TBT) position.
• Markets are mixed around the globe, though the Asian markets are broadly lower. Everyone's favorite, the Nikkei, is down by nearly 3%.
• I remain bearish. My fair market value calculation yields a market overvalued by about 6%.
• Bond yields (10-year) have hit the bottom of my projected range (2.5% to 2.85%). As mentioned previously, I took a long TBT position at $72.02.
• The World According to Peter Boockvar --
  
  Asia again traded poorly overnight. The country that has a QE program in place that is twice the size of the Fed relative to their economy, that being Japan, had the worst one day sell off since early August of 2.8% finishing the 2nd worst week since that time. The yen holding near two week highs, Canon missing earnings and Softbank saying they may delay the IPO of Alibaba were the catalysts. The country that has imported the monetary policy of the Fed via its currency peg to the US$, that being Hong Kong, was down by .6% and finishing its worst week since early August after China's 7 day repo rate jumped again for a 3rd day by 27 bps to 5.06%, the highest since late June. The Shanghai index completed its worst week since late June and closed at a 7 week low. Copper is trading at a 2 week low in response.The BoJ is getting what it wants, that being higher inflation. Headline CPI in September rose 1.1% y/o/y, above the estimate of up .9% and the most since November '08. Inflation ex food was up by .7% and ex food and fuel was flat y/o/y, the 1st time we haven't seen a decline in this metric since December '08. There are signs of a wage pick up in Japan but it can't come fast enough if inflation continues to tick higher. The grand experiment of the BoJ blows to bits if wages do not keep up with the inflation they want and/or they lose control of the JGB market.In Europe, German's IFO business confidence figure unexpectedly fell a touch after 5 straight months of gains to 107.4 from 107.7 with the estimate of 108. The UK economy grew at an annualized rate of 3.2% in Q3, in line with expectations but confirming the pickup in their recovery that we've seen in a variety of data points. European stocks are mixed.

In the news:

• The New York Times -- "Addicted to the Apocalypse" (Krugman); "In Search of Republican Grown-Ups." 
• The Washington Post -- "Michael Gerson: GOP: Stop Being So Negative."
• The Wall Street Journal -- "Another 'Affordable Care' Sticker Shock Looms."
• Financial TImes -- "Why the Bank of England Must Gamble on Growth."

Some possible economic and earnings catalysts that could be impact the market:

• Eurozone leaders summit (Oct. 24-Oct. 25).
• Eurozone M3 money supply for September (4:00 a.m. EDT).
• ECB's Asmussen speaks in Milan.
• U.S. durable goods for September (8:30 a.m. EDT).
• University of Michigan consumer sentiment for October (9:55 a.m. EDT).
• Earnings before the open -- ABBV, Atlas Copco, BASF, BBVA, Electrolux, ETN, LEA, MCO, NOV, NWL, PG, Schneider Electric, SHW, SPG, TCB, UPS, Volvo, WY.