With the markets closed today in observation of President’s Day, we can take a little while to clear our heads. We will need it, since the next four days are chocked full of reports.

The December Existing Home Sales report actually surprised to the upside, posting a gain of 6.5 percent versus November. This equates to roughly 290,000 units.

Here’s the bad news: These sales aren’t from eager buyers who got priced out of the market during the run up over the last few years. The buyers are vultures, swooping in and cleaning the carcass. Over 45 percent of the sales were “distressed” according to the report.

That is bad news for the market. It is just the beginning of a viscous cycle with three simple ways you could use to profit.

Caterpillar Inc., (CAT) predicted zero economic growth worldwide in 2009 and announced it will shed 20,000 jobs over the next few months. The world’s largest maker of construction and mining machines issued its gloomy forecast after a downturn that began in the United States grew into a full-blown global recession, gutting orders for its equipment.

Microsoft (MSFT) falls after missing expectations, cutting jobs… Data on U.S. jobless, housing fuel worries over economy… Apple up after profit beats expectations… Dow off 2.4 pct, S&P off 2.5 pct, Nasdaq off 3.2 pct…

Best Buy Profit Falls 77%; Goldman Sachs Posts $2.12 Billion Loss; New Permits and Starts at Record Low; Brazil Retail Rises 10.1%; Berkshire Buys NC Real Estate Brokerage; Crude Slides in Spite of OPEC

New home construction fell in November by the largest amount in a quarter-century, as builders slashed production while facing the worst economic conditions since the Great Depression.

Feel like getting angry? Treasury publishes latest debt/deficit details… But Fed now encouraged to intervene more… latest data show historic inflation drop… How to invest accordingly? Burritt on near-term trading, Grantham on the long haul… Byron King explains why $40 oil is “worst of both worlds”… Bill Jenkins explains the dollar’s recent downturn… Plus, the Dububble expands… refrigerated beaches on UAE shores…

Trading Theme returns…  Automakers’ bailout vote today…  Not using all your arrows…  Housing Starts go back to 1959! And Now… Today’s Pfennig!

BASF Halts 80 Factories; Oil Prices Slide to $53 a Barrel; Chinese Automakers Ask for Gov’t Aid; October Housing Starts Hit 49-Year Low; Honeywell Lands Engine Deal; Fed Sees Year-long Recession; Holiday Sales and Traffic to Plummet; BJ’s Profit Jumps 24%

Paulson says no to automakers…  Currencies trade in a tight range…  Richard Russell on a Wednesday!  TIC Flows improve… And Now… Today’s Pfennig!