The oversold market technical rally continues.

Market forces

The volume of trading yesterday remained about 20% lower than during the first rally before Obama was inaugurated.

Mad Money thinks this rally has legs because Jim Cramer thinks the socialists are beginning to realize that a lot of Americans have 401 plans invested in the market and Americans are becoming unhappy with the socialist's redistribution of wealth.

When the Roman Empire allowed illegal immigrant tribes to settle and receive free services and welfare the immigrant Vandal tribes soon decided the distribution of wealth was unfair.

So they socialized the economy by sacking Rome and the empire's wealth redistribution later became known as the fall of the Roman Empire and the term vandalism was born. Socialism is a form of vandalism that works only for the short period when the looted wealth is redistributed to the looters.

After the looting is over… poverty is all that is left for everyone unless the socialists do as the original communists did and invade and loot their neighbors or they do as the Chinese are now doing and go back to capitalist principles. For instance in China today they have no tax at all on capital gains and they have had an 8% national economic growth rate with little population growth. On the other hand in the socialist leaning South American republics they continually fail and population growth exceeds economic growth.



Market Outlook

Asian stocks were up last night with Shanghai down 0.2%, India up about 4.9%, Japan up 5.1%, and Hong Kong up about 4.4% following the American advance yesterday.

European markets are up in the range between 1.8% to 2.5% mid way through their day following the American advance yesterday.

American market futures are currently up about 0.4%, two hours before the market opens.