Democrat-Socialism takes away incentive to work and achieves uniform distribution by making everyone poor.

Corrupt socialist politicians and their socialist friends in corporations are the only ones to profit initially from nationalization but eventually the corrupt Soviet Union demonstrated that even the corrupt politicians and their friends become poor though they remain dangerously powerful right to the end. We saw the money flowing from Soros and other socialist currency market manipulators and mortgage con artists into the coffers of the politicians at unprecedented rates last year.

The Democrat-Socialist petrified stock market is now so undervalued that the current prices have built in the worst possible socialist state. To go lower we need to visualize something like a Socialist Revolution or something completely insane that perhaps only corrupt Senators could conceive. But if their corrupt associates are in hedge funds shorting the market they could all be at extreme risk of the FBI.

Look now for the Socialists to become alarmed about FBI and other surveillance of theft and corruption. They are already alarmed with free speech on their socialist air waves. Yes the socialists think they own the air we breathe and the sound and radio waves that pass through it. They have defined hate speech in such a way that church pastors are afraid to preach about morality in California and other strong Democrat-Socialist states.

The lows of the broader market indices held again. The S&P yesterday was at its November low as was the NASDAQ. The S&P close was actually a fraction below its close on its November low.

The stock market behavior could support a major advance if it turns upward this week. The NYSE, S&P, NASDAQ, and QQQQ all barely held their November lows. This recent decline has low volume unlike during the November capitulation. The market will gain confidence late this year as the FBI removes the moral hazard from the world financial systems provided the Democrat-Socialists don’t outlaw investigations as too intrusive or prejudiced and hateful of the corrupt.

Market Outlook
Last night Asian markets were mixed with China down 4.5%, India down 0.2% and Japan down 1.5%. Hong Kong was down 2.9%.

China actually bottomed November 4 at 2201 and is now up 29%. Hong Kong is today up 16% from its November Low. Evan Japan is up 15% from its November low. In contrast the broader American indices are at the November lows.

At this moment most European markets are down about 1.6 % on average.

Socialist Germany is down 4.5% from its November 2008 low. Socialist France is likewise is showing no bottom.

The US market futures indicate a slightly positive opening this morning. There is 30% to 40% headroom for this market to rally before hitting an upside resistance level. Under democrat-socialism there is no predictable bottom.

As we have reported before in a virtual countdown… the window for selling out of equities started closing January 20 and is almost shut now. Only a surge this week would crack the window open further and make continued holding of any equities worth while according to our Re-spiral method that uses MACD and Parabolic SAR data.

Our cash flow index still says hold but says that on very little net cash flow. Our trend indicator seems to be peaking and may portend the end of the Obama honeymoon rally. This week is critical and will determine if the next leg is up again or down. The Democrat-Socialists have brought the stock market to its knees with American workers and retirees begging for some signs of mental activity, competency, and integrity.