Obama spoke on Friday and the window for exiting equities closed rapidly.

Market Outlook

The Obama rally fizzled. Here was our most recent timing
Cherry pick buying into equities Nov 6-Dec 5, 2008
Cherry pick selling out Jan 20-Feb27 2009

We do not recommend shorting the market at these low prices because any good news could quickly wipe out the short sellers. But to date the Obama administration has been bad news for the economy from when he first started disparaging the economy to get elected. Remember how he disparaged Republicans who spoke positively about the future prospects of the economy? Well Obama got what he wished. Every economic sector he has touched with his plans has turned to farmer’s gold including all infrastructure and green stocks.

The broader S&P joined the DJI in breaking through its support level. The technology stocks are not far behind. President Obama spoke negatively again on Friday and failed in his last chance to stop another leg of his administration’s stock market collapse. He seems oblivious to the fact that the stock market leads the economy and by decimating the equities market he destroys the way most firms finance expansion. Borrowing covers day to day operations but expansion usually comes from selling shares of stock.

Not only is tight credit bad for the economy but corporations can not raise cash by selling stock when the Obama Administration has rendered their stock worthless. Apparently socialists do not know that in free nations the stock markets lead the economy and that is why the stock market is a leading indicator. In free nations if you destroy the market you destroy the economy.

Last night Eastern markets were down with India down 3.2% but Japan down 3.8%. Hong Kong was down 3.9% and Shanghai up 0.6%.

At this moment most European markets are down 3% to 4%. Perhaps socialist Europe recognizes the current administration as that of America's first Democrat-Socialist party. Socialists do not understand that spending money does not stimulate an economy when there is no hope of success because when a government seeks to punish human initiative people give up trying and the velocity of money goes to zero.