Trade volume and market breadth has been extremely low so far

Market forces April 30

While the market appears oversold, the Parabolic SAR and the MACD indicators could turn bullish in less than two weeks. Yes the market volume has been extremely low but it is low in recent declines as well as rallies. Market participation has been low and consequently the market has been easily manipulated.

Obviously President Bush did not have a clue when he first declared victory in Iraq and that misinformation was the beginning of the end for Bush. It showed that Bush misinformed about the severity of the threat of Hussein just as the MSNBC declaration of economic recovery now shows that Obama misinformed about the economic threat so that he and Senator Dodd could precipitate bank failures and thus Obama could get elected. McCain was taking the lead just before Dodd leaked the names of weak banks and Geihtner let Lehman fail.

It is a situation similar to when President Bush declared victory after a few weeks in Iraq. MSNBC/GE declared victory over a "Great Depression" in the first 70 days of President Obama. It is a contradiction of terms that says either MSNBC/GE is misinforming now or President Obama's campaign and administration have been misinforming all along just to frighten and spend America into a socialist state subjecting America to hyperinflation down the road.

Obama, the unions and other socialist ousted Ken Lewis as Chairman of Bank of America. Ken Lewis had the courage to expose the coercion being used by the Obama administration and has been punished severely with potential BOA witch-hunts to follow.

GM is now controlled 40% by the GM union and 50% by the Obama administration and the investors who put up 40% of the GM capital only got 10% control. The FED put up the remaining capital

It has been reported that talks between Chrysler and its bondholders broke down overnight and a bankruptcy filing for the automaker is now all but certain. Bankruptcy puts bondholders ahead of unions and FED socialists.

Obama now claims the new deficits and the new bubble he is creating belong to the Bush administration as well. FED Treasury trading is down, with volume done through the primary dealers averaging $363.6 billion a day this year, compared with $655.6 billion in the same period of 2008 according to Fed data. Trading must be higher to finance the Obama deficits or else interest rates will rise uncontrollably in the future.

Russian President Putin recently posthumously honored Iowa born American communist George Koval for giving the Soviet Union the secret that allowed then to trigger their first atomic bomb. During the FDR administration communism as well as socialism was extremely popular in America and the socialist regularly celebrated with May Day parades as the Communist dictatorships love to do. Yet the socialist FDR administration allowed Koval access to America's highest secrets. FDR also agreed to allow Stalin to take half of Poland and forced Germans out of part of East Germany so that the displaced Polish people could be relocated.


Market Outlook

MSNBC, a subsidiary of GE, continues to misinform and distort the news. The decline in the American gross domestic product was the same in the first quarter of 2009 as it was in the last quarter of 2008, 1.5% per quarter or a rate of 6% per year. The rate of decline is the same, not improved or slowing. Meanwhile housing prices continue to drop at 24% per year or 2% each month and continue to perpetuate the mortgage crisis.

MSNBC, a subsidiary of GE, continues to misinform and distort the news about market highs and lows. It said yesterday that the market made a new high. The last DOW high was 9035 on Jan 2 and was 8186 yesterday. So MSNBC misinformed because yesterday did not signal a bull market. The Dow needs to go up another 849 points (9.4%) today for it to signal a bull market. The new high must be higher to signal the market bottomed.

Similarly the last S&P high was 935 on Jan 6 and was 874 yesterday. The S&P needs to go up another 61 points (7%) today for it to signal a bull market. But by lying they end up with MSNBC and Obama setting America up for an immanent stock market decline. After a 70% decline a 30% rally still leaves a market with a 61% decline.

Overall, market price/volume behavior continues to be discouraging. The market has a variety of overbought indications such 80% of stocks over their 50-day average, where prior bull market rallies have tended to fail. And there is also the over extended McClellan oscillator index and low volume to be concerned with.

Stocks have failed so far to recruit much in the way of strong participation other than junk indicating little desire to take on additional market risk by serious investors. There is also little, merit on the basis of valuations even if profit margins recover in the years ahead. The argument that stocks are “once in a lifetime bargains” ignores the fact that former overvalued levels with record profit margins cannot be repeated with a regulated and deleveraged union dominated socialist economy.

It took until the end of WWII for the American economy to recover to the early 1929 economic levels. FDR's socialist policies did not work, they made the economy worse until FDR abandoned socialism and turned capitalism loose to fight the war. The 300% FDR recovery following the 90% loss still left FDR with a 60% net loss relative to 1929 not a 300% gain as socialists/communists/MSNBC/GE like to report relative to the FDR administration's lowest level. Americans just need to look at their 401 levels to understand the nonsense of MSNBC/GE/Pravda that Obama is the messiah.

Asian shares were up last night with Shanghai (China) up 0.4%, India closed, Japan up 3.9% after being closed yesterday and Hong Kong up 3.8%.

European markets are currently up in the range of 1.6% to 2.3%, mid way through their day today.

US futures indicate the DOW will start the day up over 100 points. When deception is exposed then enthusiasm turns to disillusion and complete withdrawal. The downturn could then set a new low.

Desperation in the spin zone

The administration is currently more worried now about the stock market than the swine flue. Why can’t it get priorities right? Before... it didn’t worry about the market because it did not know that working Americans had 401 plans invested in the market. Now MSNBC (Obama’s Pravda) tells us it all makes sense that junk stocks advance while good stocks take a hit. They say the facts and basics don’t matter... it is all market psychology now because now people believe the economy is getting better so the junk stocks look like they can survive. As evidence MSNBC incorrectly says the housing market has stabilized!!

In a sense Jim Cramer is right; housing is in a stable nose dive right now. While MSNBC points to the fact that the year to year decline in housing prices is the same this month as it was last month the MSNBC wizards don’t realize that is because they are dropping at the same 24% per year rate (2% per month) now as they were last year.

That is right, even Jim Cramer apparently wants Americans to think housing prices have stabilized when in fact the housing prices are falling at 2% per month. That is how (through the spread of ignorance) Pravda (MSNBC, a General Electric subsidiary) creates lies (spin) to curry administration favor and lucrative global warming related contracts. In the MSNBC spin zone they don’t care if the spending is for the stimulation of socialism and the undermining of capitalism so long as the father corporation gets a big piece of the action.

Wall Street has its own scam going on now lead by MSNBC. Little known junk stocks are being bought up in old fashioned short seller sucker rallies to lure in people who “know the stocks are worthless.” They draw in wave after wave of short sellers who do not realize that there a big con artists out there willing and able to buy up all the small company’s stock and then make it almost impossible for the short sellers to buy back the stock except at much higher prices. The high prices then attract even more short sellers the longer the scam goes on.

MSNBC is not in the news business it is in the scam business and the spin business and today may be the day they start throwing dirt on the coffin of Bank of America. Bank of America was the classic Harvard Business Case that MBA students recently studied on how to run a good bank. Now Obama, MSNBC, government employee unions, and Democrat state treasurers have united to run BOA into to ground by:
1) first the FED forcing BOA to take Tarp funds, then
2) forcing BOA to buy Merrill Lynch, then
3) attacking BOA management for revealing they were coerced by the administration, then
4) threatening prosecution of BOA management for violating government SEC disclosure rules by allowing themselves to be coerced by the Obama administration in the first place, and
5) spreading rumors that the Obama administration stress test says BOA is undercapitalized and as weak as the CITI disaster case, and finally
6) using state taxpayer funds and union pension funds today to try to vote out the BOA management that made BOA an American Harvard Business Case success story.


Market forces April 29

The deflationary forces are currently at their greatest rate of worsening but the steepness of decline is no longer getting steeper. The GDP deflation rate is expected to peak at -2.8% in November 2009. Currently housing prices are falling at a stable 24% per year independent of the rate of decline in American production. Barack Obama “malaise” expands the arrogant usurpation of American liberties by big government using junk science, junk stocks, and junk socialist economic policies. Beware, we were in a recession no worse than 1982 but this administration has an FDR type plan just like the one that created FDR’s Great Depression. An “Obama Great Depression” could leave the stock market down 90% like the last one. We are not even half way down yet. Obama can still wipe out our insurance industry and pensions just as FDR did.


Market Outlook

The equities market is highly oversold and junk stocks have become the big movers as investment con artists and MSNBC spin junk economics, junk science, and junk stocks. The recent advance has had no breadth and junk stock leadership. The stimulation package is only stimulating big government spending, big government hiring, and community activist con artists out there claiming they are helping people with high debt difficulties.

Unfortunately big government:
Likes to usurp power and dictate to people and business
Likes to regulate individual lives
Becomes an arrogant bully and wants unions and binding arbitration for itself for power
Is extremely difficult to stop once it takes root.
Defines love of country and healthy values as hate and politically incorrect
Big government is an invasive species that destroys all healthy growth, ethics, and societal values.

Asian shares were up last night with Shanghai (China) up 2.8%, India up 3.7%, Japan market closed and Hong Kong up 2.7%.

European markets are currently up in the range of 0.8% to 1.3%, mid way through their day today.

US futures indicate the American markets will start the day up slightly.

The rally in junk stock is subsiding.

We have had a rally in every kind of ACORN con artist styled activity. All the “Nigerian” bank transfer cons have spread and they are using East European names as well.

In the USA the most popular is the “Your Warrantee is expiring,” scam. People who take warrantees are known to be vulnerable because bright people demand products that work not products that have warranties for their expected failure.

People in the USA with mortgage and other debt problems are being targeted by community con leaders. First they are told there is no charge unless the government can help. Then they are told, “Yes, the con artist can help, just send $1000 to start the action.” Then they never see their money again.

Wall Street has its own scam going on now. Little known junk stocks are being bought up in old fashioned short seller sucker rallies to lure in people who “know the stocks are worthless.” They draw in wave after wave of short sellers who do not realize that there a big con artists out there willing and able to buy up all the small company’s stock and then make it almost impossible for the short sellers to buy back the stock except at much higher prices. The high prices then attract even more short sellers the longer the scam goes on. Soon the con artists will be able to unload their holdings at high multiples. Then when the prices fall back they will start the scam again. This seems to be the prime way the shorts are being milked at this moment and the only thing this rally has going on that is profitable.


Market forces April 28

The deflationary forces are currently at their greatest rate of worsening but the steepness of decline is no longer getting steeper. The deflation rate is expected to peak at -2.8% in November 2009 from the current April annual deflation rate of -0.9% according to the Financial Forecast Center. They expect inflation to rear its ugly head by early 2010.

This recent equities market closely resembles 1970 to 1974 and bares little resemblance to 1929. There was also a short severe contraction that occurred in 1978 that does not show up in plots that use monthly averages. The 1978 contraction caught many people who became over exuberant and were buying heavily on margin. The market continued to rise 1976-1980 under the Jimmy Carter administration but inflation and unemployment (stagflation) caused Carter to lose to Ronald Regan in 1980. Ronald Regan had an economic contraction that ended stagflation and he cut the Carter taxes and then stimulated the longest continuous period of growth in American history. It ended what was then expected to be the Japanese overtaking of the USA.

Barack Obama looks like he will be another Jimmy Carter expanding the arrogant usurpation of American liberties by big government. The Carter government was predicting the world would run out of oil in 20 years and the world population would triple. The Obama administration is predicting uncontrollable global warming and China overtaking the USA.

Market Outlook

The equities market is highly oversold and junk stocks have become the big movers as investment con artists try to lure in unwary short sellers. The recent advance has had no breadth and no consistent leadership. The stimulation package seems to be stimulating big government spending, big government hiring, and community activist con artists out there claiming they are helping people with high debt difficulties.

Unfortunately big government:
Likes to usurp power and dictate to people and business
Likes to regulate individual lives
Becomes arrogant bully and wants unions and binding arbitration for itself for power
Is extremely difficult to stop once it takes root.
Defines love of healthy values as hate and politically incorrect
Big government is an invasive species that destroys all healthy growth, ethics, and societal values.

Asian shares were down last night with Shanghai (China) down -1.9%, India down -3.3%, Japan down -2.7% and Hong Kong down -1.9%.

European markets are currently down in the range of -2.2% to -2.7%, mid way through their day today.

US futures indicate the American markets will start the day down again. The Dow Jones Industrial Average futures were down 113 points, or 1.4%, while the S&P 500 futures were down 15 points and the Nasdaq 100 futures were down 19 points.

Selling is more likely to accelerate today as buyers decide to go to the sidelines.

We expect the markets to decline significantly into July and will eventually present select opportunities to astute investors seeking value. We expect the decline will be over by early August.

MSNBC/GE (America’s PRAVDA) helps influence government contracts

Market forces April 27

MSNBC/GE (America’s PRAVDA) helps influence government contracts.

Jim Cramer works for MSNBC which is owned by GE. GE is the only American company that owns a network that can use its reporting to influence government contracts. They can influence the Secretary of Defense to cancel contracts of GE competitors such as UTC. The raptor is America’s most advanced stealth fighter (the F22) and Pravda has convinced the Secretary of Defense to cancel it. Lockheed and UTC make the Raptor. Boeing favors GE and is a competitor of Lockheed so Boeing gets special treatment from MSNBC too. The MSNBC pressure against the Air Force tanker was also about benefitting the cozy GE-Boeing arrangement. The GE/MSNBC unholy control of the Obama administration should be broken up before Americans are defrauded more by MSNBC-PRAVDA.

Most military men want to puke listening to GE’s MSNBC drooling over Obama and prospective witch hunts as Obama labels our Navy SEAL under water training as torture when applied to terrorists. The Puritans had the original witch hunts and they also used dunking stools (water boarding). In fact every kid who has been ducked in a municipal or school pool has experienced Obama’s torture of water boarding. So by all rights Obama should close all American swimming pools if we want to stop that form of Obama torture. Some times a kid even drowns as a result of it.

Jim Cramer reversed himself three times in three consecutive days. On Friday he became a Bull again and also supported gaming stocks. In the previous week he was disparaging gaming stocks but on Friday those stocks soared upwards in price so he quickly changed his tune and claimed he recommended gambling stocks three weeks ago.

Jim Cramer’s method of speaking out of both sides of his mouth works well for himself but is a disaster to those who follow his recommendations. If the market collapses today he can say he picked the top last Thursday. If it goes up he can say he say he predicted that last Wednesday when he was in Ohio. It sounds like Cramer is auditioning for the Obama administration or GE president. First Obama says Bush gave us a depression, then he takes office and the depression by his definition ends. Jim Cramer then agrees the depression is over. No Jim, the administration is the depression and we have at least 1.5 more years to worry about that. And it could last 10 years as it did in Japan.

Market Outlook

Martin Capital says the S&P PE ratio is now 58, not below 10 as MSNBC says. MSNBC (America’s PRAVDA) does it wrong. MSNBC ignores companies that are losing money because their PE is negative. Martin Capital uses the weighted S&P price and divides it by the weighted S&P earnings to get the true weighted S&P PE which is now a very high 58 because earnings declined faster than stock prices. See:

http://www.martincapital.com/chart-pgs/Pg_per.htm

The U.K.’s former Treasury adviser Roger Bootle said the U.K.’s recession will last through the end of 2010 similar to the USA as house prices drop in an economic slump increasingly resembling that of the 1930s. In the USA commercial mortgage foreclosures are now accelerating as banks are left owning empty shopping malls.

The Group of Seven finance chiefs’ said the ability to handle banks’ toxic assets will determine the strength of the economic recovery, The U.S. government and the Fed agreed to spend, lend or force down bank’s throats $12.8 trillion to end the longest recession since the Great Depression. From the stock market standpoint the Dot-Com bubble recession started under Clinton with the market drop in March of 2000 and was not considered over until March stock rally of 2003 under Bush. The mortgage derivative bubble recession from the stock market perspective began in November 2007 under Bush and if it is only as long as the Dot-com recession the stock market would bottom in November 2010 under Obama. But that would also mean that this recession is no worse than the last recession. In any event it is evident that we are seeing only a bear market rally now.

Asian shares were down last night with Shanghai (China) down 1.8%, India up 0.4%, Japan up 0.2% and Hong Kong down 2.7%.

European markets are currently down in the range of -0.9% to -1.9%, mid way through their day today.

US futures indicate the American markets will start the day down again. As of 6:45 a.m. EST, the Dow Jones Industrial Average futures were down 147 points, or 1.82%, while the S&P 500 futures were down 18.10 points and the Nasdaq 100 futures were down 22 points.

We expect the markets to decline significantly into July and will present select opportunities to astute investors seeking value. We expect the decline will be over by early August.

Jim Cramer now says sell!

Confidence in administration's financial competency declines. Administration spokesperson said she thought the American Tea Party movement is racist because the president is black.

Market forces April 24

Last night Dick Morris said, “Obama this week let it out that he will convert the government bank stock holdings from preferred stock to voting stock so the banks will be nationalized. That Morris said is socialism.”

Don Trump last night said, “I think this recession will last two more years.”

Last week was our recommended time to complete profit taking to reduce holdings. Both the MACD indicator and the Parabolic SAR turned negative early this week. Our re-spiral indicator has been saying be prepared for a decline and to buy near the next low.

Cash this week started flowing out of the stock market indicating a downturn is likely.
We expect the market will soon drop but the decline could last months.


Market Outlook

Doug Cass of RealMoney called the last stock market bottom and said yesterday that it is now time to sell.

Jim Cramer reversed himself yesterday and agreed with Doug Cass and said it is time not to be pigs but to take profits and sell. Buy and hold does not work now.

We recommended that all long market profits should have been taken by last week. All the signs are saying the stock market will decline sharply and could make a slightly deeper new low. The great damage the socialists do lies ahead when the next financial bubble is out of control. We believe next week the socialist will oust America's best bank executive, Bank of America's President Ken Lewis. It is just another demonstration of the seriousness of leftist lunacy and their power grab. It was a serious mistake to give them control of the three branches of government.

Asian shares were mixed last night with Shanghai (China) down 0.6%, India up 1.7%, Japan down 1.6% and Hong Kong up 0.2%.

European markets are currently up in the range of 0.2% to +1.5%, mid way through their day today.

US futures indicate the American markets will start the day flat again. Microsoft has just reported its first quarterly earnings decline (-32%). All the American equities markets remain extremely over bought. We believe the market made its last stand yesterday. As the markets decline significantly into July they will present select opportunities for astute investors seeking value. We expect the decline will be over by early August.

Jim Cramer is now trying to sell a stock market pig.

“Seeking alpha” says “The S&P 500 is currently trading 3.73% above its 50-day moving average, while the average stock in the index is 5.34% above its 50-day. They say this is a positive breadth measure.”

That is absolute nonsense. Breadth is defined by the Advance-decline index and the present market has no breadth of support. In fact the S&P index average delta must equal the average delta for the average stock in the index if their math is done correctly. They should have used the median stock delta compared to the average delta if they are looking for the spread in the delta. But in that case the breadth of the advance is inversely related to the spread between the median and average change relative to the 50-day average.

Jim Cramer is out of his league and…
Jim Cramer shows he knows nothing! Nothing, by repeating the “Seeking alpha” error!


Market forces April 23
Both the MACD indicator and the Parabolic SAR turned negative this week. Our re-spiral indicator says be prepared to buy near the next low.

We expect the market will soon drop precipitously but we predict the new low will be hit and thus behind us by early August. We think the penetration below the last low will be small again.
The S&P will not likely fall below 600.
The DJI will not likely fall below 6300
The NASDAQ will not likely fall below 1100


Market Outlook

All long market profits should have been taken by last week. All the signs are saying the stock market will decline sharply and could make a slightly deeper new low. Right now Obama says the socialists have the right to pick and chose which companies will survive once any company comes to drink at the poisoned cash trough of the socialists. The real damage the socialists will do lies ahead. We believe next week the socialist will oust America's best bank executive, Bank of America President Ken Lewis, as another demonstration of the seriousness of leftist lunacy.

Asian shares were up last night with Shanghai (China) up 0.1%, India up 2.9%, Japan up 1.4% and Hong Kong up 2.3%.

European markets are currently mixed in the range of -0.2% to +1%, mid way through their day today.

US futures indicate the American markets will start the day flat. Apple is up and down because while profitable it has lost its creative entrepreneur. All the American equities markets remain extremely over bought. We expect the market to try to make its last stand today. As the markets decline further they will present select opportunities to astute investors seeking value by catching individual stocks that are down in higher value ranges. We expect the decline will be over by early August.

President Obama finally mentioned safe Nuclear power today, April 23.

But the lunatic left knows it works and therefore opposes its use. That is how we define lunacy. Lunacy (insanity) is repeatedly doing things over and over that just don't work.

Bob Brinker had a nuclear scientist on his money talk show several months ago who explained the French nuclear program and why their safe nuclear power was the real answer to our energy crisis. Ultimately we would need to develop fusion power but nuclear power from fission could buy us a few thousand years. Obama advisor, Warren Buffet, last year agreed with Bob Brinker and cancelled his wind power investments. The French now meet more than 80% of their energy needs with safe nuclear power and have not had a mishap in all the years they have been using it. In the whole western world, only American Democrat Socialists and the American lunatic left still oppose nuclear power. And demagogue Harry Reid in the Senate is the prime opponent. Reprocessing spent fuel is necessary to reduce nuclear waste by 95%. Then safe storage in Yucca Mountain is needed until if and when further reprocessing and permanent disposal is desired. As it is, as we spend nuclear fuel the radioactivity of the earth is depleated because we used most of it up and that is why it is called spent fuel. So when we store spent fuel in the ground we actually put less radioactivity back under ground than we took out to burn. That is why consuming the nuclear fuel makes the planet safer. We can even convert nuclear warheads to safe electrical energy and make the world much safer. Here is what France has done.

France's decision to launch a large nuclear program dates back to 1973 and the events in the Middle East that they refer to as the "oil shock." The quadrupling of the price of oil by OPEC nations was indeed a shock for France because at that time most of its electricity came from oil burning plants. France had and still has very few natural energy resources. It has no oil, no gas and her coal resources are very poor and virtually exhausted. In the USA environmentalists convinced President Carter that the world was running out of oil and there was nothing he could do. The environmentalists laughed when candidate Ronald Reagan proposed the world increase the supply side of oil.

French policy makers correctly saw only one way for France to achieve energy independence: nuclear energy, a source of energy so compact that a few pounds of fissionable uranium are all the fuel needed to run a big city for a year. Plans were drawn up to introduce the most comprehensive national nuclear energy program in history. Over the next 15 years France installed 56 nuclear reactors, satisfying its power needs and even exporting electricity to other European countries. The American supply side plan gave the world another thirty years of breathing room until the growth of the undeveloped countries like China and India overwhelmed supply. Now we finally cannot find enough oil to sustain world growth.

American lunatic leftists claim there is plenty of oil and we should drive up American energy costs until wind and bio-mass energy is competitive. But the immediate effects of their ideas have been to drive up the price of food and cause greater world starvation especially in corn dependent socialist societies. It is interesting to note that starvation only seems to occur now in countries with lunatic left socialist cultures. Smarter socialists use nuclear energy. The American lunatic left have also shut down most American hydroelectric plants and removed the dams because they are afraid it hinders the fish spawning in rivers. The state of Washington used to export their hydroelectric energy but now they don't have enough for themselves. The American lunatic left stopped the recent wind energy farm proposals on the New England seacoast because they were afraid that sea gulls will fly into the slowly rotating blades and be stunned and could drown. Now they say that there is plenty of oil and America should not begin drilling to have oil coming on line when the world economy recovers from the current recession. The French have concluded that the lunatic left uses psychology to exploit deep seated human myths and fears.

Ironically, the French nuclear program is based on American technology. After experimenting with their own gas-cooled reactors in the 1960s, the French gave up and purchased American Pressurized Water Reactors designed by Westinghouse. Sticking to just one design meant the 56 plants were much cheaper to build than in the US. Moreover, management of safety issues was much easier: the lessons from any incident at one plant could be quickly learned by managers of the other 55 plants. The "return of experience" says Mandil is much greater in a standardized system than in a free for all, with many different designs managed by many different utilities as we have in America.

Things were going very well until the late 80s when another nuclear issue surfaced that threatened to derail their very successful program: nuclear waste. Now, using the very recovery processes that the American lunatic left oppose in the USA the French were able to consume most of the waste to create additional energy.

French technocrats had never thought that the waste issue would be much of a problem. From the beginning the French had been recycling their nuclear waste, reclaiming the plutonium and unused uranium and fabricating new fuel elements. This not only gave additional energy reducing the need for the fuel, it reduced the volume and longevity of French radioactive waste. The volume of the ultimate high-level waste was indeed very small: the contribution of a family of four using electricity for 20 years is a glass cylinder the size of a cigarette lighter. It was assumed that this high-level waste would be buried in underground geological storage and in the 80s French engineers began digging exploratory holes in France's rural regions.

To the astonishment of France's technocrats, the populations in these regions were extremely unhappy. There were riots. The same rural regions that had actively lobbied to become nuclear power plant sites were openly hostile to the idea of being selected as France's nuclear waste dump. In retrospect, Mandil says, it's not surprising. It's not the risk of a waste site, so much as the lack of any perceived benefit. "People in France can be proud of their nuclear plants, but nobody wants to be proud of having a nuclear dustbin under its feet." In 1990, all activity was stopped and the matter was turned over to the French parliament, who appointed a politician, Monsieur Bataille, to look into the matter.

Christian Bataille resembles the French comedian Jacques Tati. His face breaks into a broad grin when asked why he was appointed to this task. "They were desperate," he says. "In France, executive power dominates much more than in Anglo-Saxon countries. So that if the Executive asks parliament to do something it means they are really at the end of their ideas."

Bataille went and spoke to the people who were protesting and soon realized that the engineers and bureaucrats had greatly misunderstood the psychology of the French people. The technocrats had seen the problem in technical terms. To them, the cheapest and safest solution was to permanently bury the waste underground. But for the rural French says Bataille, "the idea of burying the waste awoke the most profound human myths. In France we bury the dead, we don't bury nuclear waste...there was an idea of profanation of the soil, desecration of the Earth."

Bataille discovered that the rural populations had an idea of "Parisians, the consumers of electricity, coming to the countryside, going to the bottom of your garden with a spade, digging a hole and burying nuclear waste, permanently." Using the word permanently was especially clumsy says Bataille because it left the impression that the authorities were abandoning the waste forever and would never come back to take care of it.

Fighting the objections of technical experts who argued it would increase costs; Bataille introduced the notions of reversibility and stocking. Waste should not be buried permanently but rather stocked in a way that made it accessible at some time in the future. Europeans felt much happier with the idea of a "stocking center" than a "nuclear graveyard". Was this just a semantic difference? No, says Bataille. Stocking waste and watching it involves a commitment to the future. It implies that the waste will not be forgotten. It implies that the authorities will continue to be responsible. And, says Bataille, it offers some possibility of future advances. "Today we stock containers of waste because currently scientists don't know how to reduce or eliminate the toxicity, but maybe in 100 years perhaps scientists will."

Bataille began working on a new law that he presented to parliament in 1991. It laid plans to build 3-4 research laboratories at various sites. These laboratories would be charged with investigating various options, including deep geological storage, above ground stocking and transmutation and detoxification of waste. But in reality the nuclear energy process itself is a detoxification and purification process. Fissionable material already present it the earth is irradiating everything around it. That material is mined and concentrated so that a sustained much faster nuclear reaction can occur and in days the radiation content is reduced to what normally would occur in millions of years. Essentially each reactor gets its energy by converting radioactive Uranium into non-radioactive lead. The French then remove other radioactive wastes such as any created Plutonium by concentrating them and extracting their energy again removing radioactivity. The waste material produced from the radiating of the surrounding earth is the same kind of low level radioactive waste that the radioactive uranium produces if it is left in the ground. Therefore the nuclear energy program purifies the earth by removing highly radioactive materials and replacing them with the low level radioactive materials that will occur anyway if the Uranium is left undisturbed. These solid wastes are turned into a glass product that virtually eliminates any possibility of being penetrated or dissolved by water in the earth. Then they are store in extremely arid locations similar to the locations where uranium is mined that in addition have no ground water. The glass product is sealed in stainless steel containers that can be inspected, removed, reprocessed at a later date or further encapsulated in reinforced concrete. The net effect is the detoxification of the earth by accelerating the decay and elimination of the earth's radioactive materials (i.e. uranium) in nuclear power plants to produce low cost nuclear energy.

But as with hydroelectric plants (i.e. the state of Washington) and windmills on the Atlantic coast (i.e. Naragansette bay), and offshore oil drilling… the American lunatic left opposes nuclear energy (i.e. anywhere). These sources of energy have no CO2 foot print but the American environmentalists don’t want them in their back yard. Instead the American lunatic left support the continued use of fossil fuels at prices that impoverish Americans.

The energy consumed in producing a glass solar panel (mining, melting, fabricating) exceeds the net energy produced in the life of the panel. The actual output of wind energy farms has been demonstrated to be about 25% of their quoted (design) lifetime output. The goal of American environmentalists is not the lowering of our carbon footprint but is effectively the enrichment of a few lunatic left manufacturers who cannot produce any products with a net energy benefit, the Arab kings and princes, and world oil company executives. And they blame you and me who they force to consume oil for the C02 damage to the environment. The American lunatic left offers no worldwide solution except blame, regulation, worldwide poverty and ultimately starvation.

It is therefore not surprising that Warren Buffett, a key Obama advisor recognizes that nuclear energy is America’s future.

Socialist will use taxpayer funds to fire Bank of America President Ken Lewis next week for resisting nationalization. Corrupt Wall Street analysts

Corrupt Wall Street analysts help socialists. Yesterday Wall Street fluctuated in a narrow range as traders looked at the data from corrupt Wall Street analysts. Wall Street is uneasy because corrupt market analysts had set expectations low after a bruising January in which fourth-quarter results short-circuited a stock market rally and they thought that would fool investors this time around. But the earnings are disappointing even after setting low expectations and such deceptions by corrupt analysts only give socialists more fodder to use to tear down the American market system as being corrupt.

Democrat-Socialist Denise Lynn Nappier is the first African-American woman elected to serve as a State Treasurer in the United States and the first elected to a statewide office in Connecticut. The Connecticut pension fund owns 3.2 million Bank of America shares. The fund has a current market value of $34.3 million with unrealized losses of $57 million as of Monday. Under her administration the losses of Connecticut investments have skyrocketed and it is getting worse because she will not sell the speculative banking shares because Connecticut state workers would be devastated to know she has already lost 62.5% of the state worker pension fund on speculations. The socialists plan to decapitate Bank of America management for opposing nationalization and for asking permission to give tarp funds back. Nappier said they plan to use the votes of the CT pension fund shares and other union owned shares to vote him and other corporate capitalists out and put socialists in. The socialists don’t need the FED to own common stock to destroy capitalism. The unions and the Democrat-Socialist state treasurers can just use taxpayer paid for shares in pension funds to socialize any industry they chose. The banks are targeted to be the first to nationalize because they control the capital and therefore they can be used to destroy any capitalists who resist. If you search the web for information on this Socialist political attack on Bank of America you will see there are presently more than 260,000 entries.

After the Socialist take over our country… then we must live with the Maoists in America. In India the Maoists were shooting and burning trucks and drivers yesterday and kidnapped a train today.

In Venezuela the one candidate who was brave enough opposed Maoist Chavez in the last election has fled the country because he has been accused of having illicit wealth. He has not been able to fully explain $68,000 of his wealth so they want to imprison him for corruption.

Market forces

The International Monetary Fund predicted U.S. financial institutions could lose $2.7 trillion from the global credit crisis. That is 2700 billion dollars. Recent profits of 2 billion for some companies palls at the loss that has yet to be recognized. And the recent rally was based on the financials having bottomed. The real bottom is zero stockholder equity when the nationalization is complete. All the billions being spent by Obama is only a drop in the bucket unless they allow both bond and stockholders in failed banks to go under. If nationalization is the alternative and then even the bond and shareholders of the good banks will lose almost everything.

Subodh Kumar, an independent investment strategist in Toronto said, "The market was essentially ahead of itself," referring to the extent of the recent advance.

"Nothing has been remedied in the banking sector," said Dave Rovelli, managing director of trading at brokerage Canaccord Adams. "A lot of these banks, they're basically making money only because they're getting money from the government for free."

Bill Fleckenstein says the FED is a joke. “Inflation will lag the FED money printing.” He predicts problems in the bond and currency markets. “Right now the stock market is too dangerous.” “This bank rally because of an accounting rule change is just noise not substance.”

Doug Roberts, chief investment strategist, ChannelCapitalResearch.com said, "People are kind of going day to day," he said. "Everybody is hesitant to take too big of a position given the uncertainty of the environment."

In the corporate news, DuPont said its first-quarter profit dropped on falling demand. The chemical company also cut its full-year forecast and said it will increase its efforts to cut fixed costs.

Bank of New York Mellon's first-quarter earnings fell a steeper-than-expected 57 percent. The company said it was slashing its dividend to boost capital. The stock fell $3.39, or 12.1 percent, to $24.64.

Merck reported a 57 percent drop in first-quarter earnings because of a slide in both sales of its drugs and income from its partnership on cholesterol medicines. Merck fell $1.82, or 7.2 percent, to $23.40.

Bank of America Corp.'s earnings report on Monday touched off renewed fears about rising levels of bad debt. Traders grew worried that economy might not be stabilizing as hoped.


Market Outlook

All long market profits should have been taken by last week. All the signs are saying the stock market will decline and could hit a new low. Right now Obama says the socialists have the right to pick and chose which companies will survive once any company comes to drink at the cash trough of the socialists. The real damage the socialists will do lies ahead.

Asian shares were down last night with Shanghai (China) down -3%, India down another -0.7%, Japan up 0.2% and Hong Kong down -2.7%.

European markets are currently flat in the range of 0% to 0.4%, mid way through their day today.

US futures indicate the American markets will start the day down again. All the American equities markets remain extremely over bought. As the markets decline further they will present select opportunities to astute investors seeking value by catching individual stocks that are down in higher value ranges.

If the Lunatic Left gets to decide which corporations and banks will survive or fail we will eventually starve.

To be taken seriously the left really needs the power to kill their opponents. Otherwise Hitler would have remained a bar room flop and Castro would have remained a farm hand. But without the power to kill and dissolve living opponents in acid as Hussein did… the Loony leftists would end up in prisons for the criminally insane instead of as “notable socialists.”

Take the Obama automobile project for instance. Instead of letting the market decide, Obama’s main concern has been the GM unions. The $18 Billion in taxpayer money goes to essentially give the unions enough to retire and be on the dole to be a guaranteed leftist support group to carry red flags and sing socialism's praises in the future.

The leftist cars will be electric. Cars currently use gasoline and have engines to convert the chemical energy of hydrocarbons directly into mechanical energy that moved the car in one simple step. The left’s car will have electric power plants to convert hydrocarbons first to AC electricity, then transmission lines to carry the AC electric power to chargers that convert from AC electric to DC electric for car batteries, then electric motors to convert the DC electricity to mechanical work. Each energy conversion and transmission step looses 10% to 50% of the energy. So our current simple one step energy transportation process will be an inefficient Obama loony leftist four step conversion process. And leftist junk science will also need to waste energy melting tons of steel to cover our beautiful countryside with electric transmission towers which will affect neighborhoods, the environment and public health. Carbon dioxide emissions with the loony left Obama process will more than double except for the possibility that many people will no longer be able to afford to drive. The same waste of energy and increase in CO2 emissions from hydrocarbon power plants happens if they go to mass transit. Most of the CO2 emissions come from building and maintaining the enormous infrastructure that would be needed.

If the left supported nuclear energy it would provide sensible cheap clean electrical energy. But the Obama leftists are plain loony.

Americans still do not allow the left to silence much less suppress the opposition. But that power to silence, imprison and then even kill dissidents will likely be demanded by the leftists at some point as they have demanded in every socialist totalitarian state thus far.

The socialists will always find it necessary to falsify economic data. Big lies are the product of all Loony Leftists who take power. As the Soviet Union collapsed it became apparent that their recorded productivity statistics were simply fabricated and they could not even grow enough food to feed themselves. That is why the socialists starve all across Africa and Asia. It is blamed on climate change but it is actually due to the lunatic leftists who run every country where people are starving.

And of course the Loony Left invented “human caused global warming.” Every competent scientist knows we have had several glacial cycles followed by global warming cycles on earth before and they occurred with or without man. Every intelligent person can understand that fossil fuels now in the ground once came from plants and animals that lived on the surface of earth that converted the CO2 from the air into biomass deposits. Therefore every pound of hydrocarbons and even limestone deposits came originally from the air and therefore at one time CO2 was a much higher percentage of the air that earlier life breathed. We are no where near the levels of CO2 in some earlier periods of global warming. You can throw out all the loony leftist's junk science.


Market forces

We can see the prices of materials already rising but we can no longer believe the economic statistics because the Loony Left now makes them up as they go along. They will lie and say they must spend more because they spend to maintain their political power and control. A free market system spends to get the best and most efficient use of the capital investment. Ultimately this Obama Administration and the entire corrupted Congress needs to be turned out of office if America is to survive. The damage the administration is doing now will only start to be apparent in 2010 and will be accelerating rapidly.

When the world drops the $U.S dollar, our money becomes worthless and we will have hyperinflation. That crisis will be used by leftists to replace American liberty with socialist totalitarianism step by step. It is an historical fact that before Adolf Hitler, Berlin was the world center for science, engineering and culture. Socialism’s big lies and big spending reduced that nation to a bombed out shell which American capitalism revived.

Market Outlook

All market profits should have been taken by last week. All the signs are saying the stock market will decline and could hit a new low. As leftist lies become apparent it will be clear that they are poison to a free society and a free market. Uncertainty causes markets to decline in value. We can only hope that we can remove leftists from power before they destroy our country. Right now Obama says he has the right to pick and chose which companies will survive once any company comes to drink at the cash trough of the socialists. The real damage they do lies ahead.

Asian shares were down last night with Shanghai (China) down -0.9%, India down -0.7%, Japan down -2.4% and Hong Kong down -3%.

European markets are currently down in the range of -1.2% to -1.6%, mid way through their day today.

US futures indicate the American markets will start the day down again. All the American equities markets remain extremely over bought. As the markets decline further they will present select opportunities to astute investors seeking value by catching individual stocks that are down in higher value ranges.

The FDIC is insolvent as banks fail… but now Obama just prints funny money.

Obama goes around the world apologizing to Marxists for USA human rights policies of the past. His aides suggest the USA can learn from Fidel Castro’s totalitarian state.

The clear and present economic danger is no longer just an Obama created “Great Depression.” It is much worse. It is the loss of the American work ethic and American liberty. By giving illegals citizenship and expanding welfare to those who prefer not to have to work, Obama gains a Socialist electoral majority and disenfranchises working Americans. The American worker is now a cash cow to be milked for socialist expansion.


Market forces

Rates on three-month bills turned negative in December for the first time since the government began selling them in 1929 as investors panicked worrying about an Obama Great Depression.

Demand for bills is rising again because the Federal Reserve buys Treasuries to drive down borrowing costs in a policy of so-called quantitative easing. China, the largest U.S. creditor, with $744 billion of debt, has questioned the practice. Leaders of China are voicing concern about their investments as Fed and Treasury officials pledged $12.8 trillion, (90 percent of last year’s USA gross domestic product), to pull off the largest USA socialist coup since FDR. That amounts to the FED taking on over $100,000 additional debt on every American family household.

China’s exports to the U.S. jumped 40 percent in March. People’s Bank of China Governor Zhou Xiaochuan called for the establishment of a non USA exchange currency last month after Chinese Premier Wen Jiabao said he’s “worried” a weaker U.S. dollar may hurt China’s investments. Inflation and a depreciating dollar would erode the value of U.S. holdings owned by international investors. George Soros funded the Obama campaign with this goal of destroying the US currency so that his anti-American bets will make him the richest man in the world.

Investors now realize that the “Great Depression” was a socialist election scare tactic last year. What investors are slow to realize is that Marxists always create financial crises to justify big government conversion over to totalitarianism. Just as FDR created the last Great Depression in his attempt to crate a socialist state, Obama hopes his policies will also create a Great Depression to succeed where FDR failed. So yes, Bush did not start a Great Depression. The next Great Depression is yet to happen under Obama.

Market Outlook

All the signs are saying the stock market is about to collapse and it is time to prepare to cherry pick into a long market position as the market pulls back in the next correction. But be very careful. This Jim Cramer “bull market” is a sucker rally for wannabe rich leftists who actually believe the stimulation package has already been spent and is working. It could be an ugly decline when it ends. If it declines more than 10% it could then plummet to a new low.

Asian shares were up slightly last night with Shanghai (China) up 2.4%, India down 0.4%, Japan up 0.2% and Hong Kong up 1%.

European markets are currently down in the range of -1.2% to -2.4%, mid way through their day today.

The U.S. dollar is down sharply. US futures indicate the American markets will start the day down sharply. All the American equities markets remain extremely over bought. As the markets decline further they will present select opportunities to astute investors seeking value by catching individual stocks that are down in higher value ranges.

Millions of Americans demonstrate against Obama's socialist policies and his threat to American liberty.

Millions of Americans demonstrate against Obama's socialist policies and his threat to American liberty.

Fox News ratings soar as Americans turn off the anti-America's socialist PRAVDA and watch the Tea Party grow to millions of taxpayers. "Dump the Bums" in 2010 and 2012 touches the hearts of most Americans.

Stocks rally as it becomes clear that the “Great Depression” Obama and the leftist media drilled into people’s heads last year was only intended to get Obama elected and to create a crisis atmosphere so that they could force socialism down our throats with their plurality in Congress.

Obama still does not understand that FDR’s socialism caused the collapse of confidence the resulted in America’s first “Great Depression.” So he still thinks he can have his cake and eat it too. He knows this was a recession not a depression so he now wants people to believe he ended the imaginary “Great Depression” with his socialist spending spree. The Marxist idiots and tax dodgers in his administration have claimed credit for ending the imaginary “Great Depression” a full year before their socialist spending spree and subsequent hyper stagflation will even occurs.

So yes the “Great Depression” is off the table because it was just an election game to blame the people who want American capitalism and liberty to survive. Pelosi said yesterday that American capitalism and liberty are failed policies. Yet America continues to have to send food feed the successful socialist nations like Somalia, North Korea, and Russia even as those nations and Nancy Pelosi spit time and time again on American capitalism and liberty. And look at Iceland which has a government run by clones of Nancy Pelosi… they were the first to go bankrupt.

The only failure of American capitalism and liberty is that because we are free we are free to elect communists and socialists and other stupid democrat and republican politicians who work hard to create an indigent and dependant electorate so that people’s votes can be bought with productive worker’s taxes. The socialist plan works just like it worked in Russia and Eastern Europe until their people tore down the iron curtain that was their prison. It worked until the people realized they were pretending they had real work and the government was pretending to give them real pay and real health care.

The economic danger is not a “Great Depression.” It is much worse. It is the loss of the American work ethic and America’s liberty as Obama and Pelosi destroy American prosperity, incentive to work, and liberty.



Market forces

The market rose yesterday on average volume. The previous week of market advances were on lower than average trading volume. That is symptomatic of the end of a rally. Investors have been buying because they realize the “Great Depression” was a socialist scare tactic. But as soon as we feel the effects of socialism the economy will collapse. Millions of productive Americans plan to stop working and stop paying taxes. The ideas of Ayn Rand are spreading again as they did during other periods when American liberty and self reliance were threatened

Market Outlook

All the signs are saying it is time to prepare to cherry pick into a long market position when the market pulls back in the next correction. But be very careful. The Obama pronouncement of a “Great Depression” was never real. The ignorant and arrogant socialist Pelosi/Obama Administration has been and still is the only economic threat we have. This Jim Cramer “bull market” has turned out to be a sucker rally for wannabe rich leftists who actually believe the stimulation package has already been spent and is working. It could be an ugly decline when it ends. If it declines more than 10% it could then plummet to a new low.

Asian shares were mixed last night with Shanghai (China) down 1.2%, India up 0.6%, Japan up 1.7% and Hong Kong down 1.2%.

European markets are currently up in the range of 1% to 1.6%, mid way through their day today.

US futures indicate the American markets will start the day mixed. All the American equities markets remain extremely over bought. As the markets decline further they will present select opportunities to astute investors seeking value by catching individual stocks that are down in higher value ranges.

The zombie socialist Administration has been and still is the only “Great Depression” threat we have.

Obama Homeland Security just classified conservatives and returning veterans as being as dangerous as McVey, the Oklahoma City bomber. Once again Obama blames the Bush administration for this inept and disgraceful Obama administration report.

Yes it may be true the Bush administration ordered Homeland Security to write reports but this is ten weeks into the Obama Administration and Obama made those negative final profiling conclusions to embarrass America so that he could apologize once more to the terrorists. Once again Obama blames Bush for Obama’s inept administration. Duhh… once again Obama says he knew nothing about the report. He is also about to release classified CIA information to anti American leftists to try to further embarrass Americans and to expose CIA operatives to danger. Soon he will no doubt apologize for the Puritan water boarding done in colonial times.

Yes, did you know that the early Puritans used to use water board type behavior modification all the time? They called them dunking stools. The fowl mouthed offender was tied into a stool at the end of a see-saw like pole. The offender was dunked into a pool to simulate drowning and came up coughing and gasping for air. After enough dunks their foul language or disgusting behavior was permanently corrected. They were rehabilitated in just minutes. If we used water-board dunking today in our prisons it is likely our criminals could be rehabilitated quickly and the recidivism rate would drop to near zero. Certainly the country club prison system with its color television treatment does not even work with normal criminals so it is obvious the leftist Obama proposals will never work with terrorists.

Yesterday thousands of working citizens in over 700 cities demonstrated against Obama socialist tax and spend welfare policies. They are beginning to talk about a massive demonstration in Washington DC on July 4. I went to the Hartford CT demonstration and they want term limits and to sweep out Congress in 2010 and to sweep out Obama in 2012. They are also collectively coming to the conclusion that with the exception of FOX news, PRAVDA is much more truthful than the NY Times and the other news networks.

The tax and spend policies of FDR turned a 1929 panic and recession into a great depression. On the other hand the panic of 1987 was far more severe than 2008 (25% drop in first two days in Oct 1987) and the banking collapse that followed was just as severe as this current one. The only difference was the Regan Administration was not so stupid as to proclaim we were in a great depression as Obama did and the Obama media did beginning when they thought he could win the Democrat nomination. The lingering mild 1987-92 recession caused George Bush Sr. to lose the election in 1992. That economic crisis ended quickly because the nation was not run by socialist leftist fools who wanted to create a crisis thinking Americans would be stupid enough to buy into socialism. But it is the leftist fools now running the Obama administration’s perpetual crisis just as FDR had socialist fools running his perpetual economic crisis.


Market forces

The market rose yesterday on very low volume. Also the previous week of market advances were on lower than average trading volume. That is symptomatic of the end of a rally.


Market Outlook

All the signs are saying it is time to cherry pick into a positive market position when the market pulls back in the next correction.

Jim Cramer is wrong! The threat of a “Great Depression” is not over. The zombie socialist Obama Administration has been and still is the only “Great Depression” threat we have. Until the leftist Obama administration is replaced with a pro America administration, Ron Emanuel will produce crisis after crisis to institute leftist socialist policies. Unfortunately not all those crises will only be just make-up crises.

Asian shares were down last night with Shanghai (China) down 0.1%, India down 3%, Japan up 0.1% and Hong Kong down 0.6%.

European markets are currently up in the range of 0.9% to 1.2%, mid way through their day today.

US futures indicate the American markets will start the day flat again. All the American equities markets remain extremely over bought. The FED had indicated that the recession is here at least to the end of this year. As the markets decline they will present select opportunities to astute investors seeking value by catching individual stocks that are down in higher value ranges.

Look around the world. The ultimate socialists have become the stupid thieves, con-artists, pirates, and martyrs of the world.

Obama's plan is the socialist Africa elephant plan which is similar to the Cuba, Pakistan, and Somalia plans but much more expensive. African socialists go out and poach the elephants so the village people feast for weeks telling stories about how brilliant their socialist achievements are and the progress they have made. They tell stories about how the previous capitalist gamekeepers stole the wealth of the common people when they hid all those elephants in the game preserve where they multiplied in obscene abandonment.

After the elephant feast the villagers are all happy, fat, lazy, and covered with elephant grease. But the tourists don't come because the people ate all the country's means of generating wealth. So now the socialist leaders confiscate and sell off the farm irrigation equipment and harvesting equipment (get back to nature environmental basics) and borrow from socialist and uninformed foreigners. The socialist leaders divide all the cash up between their supporters, political hacks, and the original "George Soros" financiers so they are all rewarded and very happy with enough wealth for their lifetime. Finally the socialist leaders have to assume the role of warlords to maintain social order and have to suppress all the capitalist "extremists" who tell the truth and point out how stupid the thieving the con-artist socialist programs are. The socialists survive at best for only fifty years while destroying all the national wealth and their environment by the socialist consumption binge of all stored capital and production sources.

But the big lie remains to blame the greedy capitalists who had put all the elephants on a preserve where they could grow and multiplied obscenely. And finally the capitalists are all dead and the country is ruled by socialist gangs and warlords who train the children to become martyrs, murderers, and pirates to steal what little remains from anyone in sight. That is the life cycle of socialism in both its religious and secular forms. Religion only adds to the cruelty and bigotry of the punishment of non-socialists.

Look at how the Socialist Nazi and the Soviet communist parties left their economies and environment in complete and utter ruin in less than fifty years. Look at the current Arab socialist states and the extreme poverty and cruelty of their socialist systems amid an ocean of oil reserves and the mineral rich African continent. That is what the Obama socialism has to offer America… the disintegration of American ideals, self-sufficiency, and liberty.

Today there are tea parties all around America to protest the direction government is taking.

Market forces

The market fell yesterday on 20% higher than average volume. The previous week of market advances were on lower than average trading volume. That is symptomatic of the end of a rally.
The rally hangs there as the Obama press does its best now to make the economic news positive even though it shows that Obama’s entire package of socialism is a waste of money and President Bush’s actions alone prevented a financial collapse. You see the stimulation package has passed but the money does not flow (except to ACORN thugs) until the states decide what other political supporters and thugs should get the money. The recipients must be vetted to be sure they are unionized and the states agree in advance to dismantle all the 1990's welfare reforms that help people get off of welfare. The stimulation package is intended to create dependence on socialist programs not self-sufficiency.

Under the Obama administration bankruptcy the auto union that killed GM and the American auto industry gets their pensions while the bondholders and stockholders who loaned and invested the money to GM will lose their entire investment. That will be the case for all the banks and corporations that require TARP funds. That is how socialism works. It ultimately turns nations into wastelands.

Market Outlook

All the signs are saying it is time to cherry pick into a positive market position as the market pulls back an estimated 10%.

Asian shares were up last night with Shanghai (China) up 0.3%, India up 2.9%, Japan down 1.2.

European markets are currently down in the range of -0.1% to -0.5%, mid way through their day today. .

US futures indicate the American markets will start the day flat again. All the American equities markets remain extremely over bought. The FED had indicated that the recession is here at least to the end of this year. As the markets decline they will present select opportunities to astute investors seeking value by catching individual stocks that are down in higher value ranges.

Banks scramble to get from under the heels of Obama’s socialism.

Socialism means corporate death and the looting of investor assets. When Cuba did it to Americans, America helped investors recover some of the losses. But when Obama does it to Americans even the bond holders go broke. So asking for financial aid from the socialists is the same as asking for corporate decapitation followed by disembowelment and quartering.

No wonder banks are giving us so much good news that they are returning their TARP funds quickly.


Market forces

The market yesterday rose slightly on very low volume.

The rally hangs there as the Obama press does its best now to make the economic news positive even though it shows that Obama’s entire package of socialism is a waste of taxpayer money and President Bush’s actions alone prevented a financial collapse.

Market Outlook

All the signs are saying it is time to cherry pick into a positive market position and the market pull back. Now, during pull backs, is time to look for the new bargains.

Asian shares were up last night with Shanghai (China) up 0.5%, India up 1.5%, Japan down 1.9%.

European markets are currently up in the range of +1.2% to +1.8% mid way through their day today.

US futures indicate the American markets will start the day flat again. All the American equities markets remain extremely over bought. The FED had indicated that the recession is here at least to the end of this year. As the markets decline they will present select opportunities to astute investors seeking value by catching individual stocks that are down in higher value ranges.

Tea parties grow

If it is true that the bear market is over for equities and the economy is about to turn around then President Bush must get the credit for the recovery because Obama’s only role was his irresponsible verbal trashing of the economy to set us up for his desired socialist state. The fact is that only the Bush TARP funds have played the significant role so far. It has essentially tripled the American fiscal deficit for the first quarter. So if we have a real bull market bubble, Bush gets the credit for the recovery currently under way. Obama hyper spending has not started yet.

As for President Obama, his policy must therefore be misguided because he continues to spend $trillions more just as we are going into the bull market bubble thereby burdening the economy with even more debt when the next recession occurs. The Obama debt is projected to be greater than the entire debt acquired by America since 1783 and will go to Obama’s Acorn thugs and socialist supporters such as George Soros who can’t wait to feed on a dead carcass like American Capitalism!

But are we in a bull market… or are Jim Cramer and the MSNBC staff just completely full of bull? We think we are still in a bear market and that the rally has just about run its course. Therefore Jim Cramer is full of Bull and just another socialist sell out willing to support any misguided policies that can create another market bubble for him to play with.

Obama is encouraging more debt which got us into the problem in the first place. The U.S. Treasury's plan leverages public funds 6-to-1 in order to defend the mismanaged financials that took excessive leverage. At the same time, the Treasury plans protect their hand-picked “managers” from personal risk while encouraging them to overpay at taxpayer expense. This is a recipe for the insolvency of the FDIC. These are the failed policies of the arrogant and selfish Senate Banking Committee members like Rangel and Dodd who turned home ownership into a welfare program for con artists, thugs and every criminal willing to vote for their largess and give them mortgage, rental property, and any other real estate bribes. They are like the fat Roman Senate scum of another age that sold out their empire for personal profit. These are the political dregs which the Tea Parties seek to throw out of office along with the Republicans who sold out by not supporting term limits after Americans gave them control of Congress in 1994. There will be more tea parties across America on April 15. They want to throw all the corrupt and socialist bums out of office in 2010.



Market forces

The market Thursday rose on very, very low volume indicating the rally is out of steam.

Investors now fear that the trillions of dollars the government will print to finance the stimulation package will have great negative currency and inflation repercussions starting in six months. The socialist ignore the reality that FDR made the same mistakes during the Great Depression. Corruption and political machines grew under FDR, not the economy. It was after WWII that the stock market fully recovered.

Market Outlook

All the signs are saying it is time to cherry pick into a positive market position as the market retests its lows. All shorts should already be covered and profit taking should be done into any future advance. Now it is time to look for the new bargains when the market falls back about 10%. The stock index’s record one-month gain is sending danger signals to investors who remember how similar rallies in U.S. stocks came to an end.

Asian shares were up last night with Shanghai (China) up 1.4%, India up 1.5%, Japan down -.5% and Hong Kong up 3%.

European markets are currently up in the range of 1.5% to 3% mid way through their day today. .

US futures indicate the American markets will start the day flat again. All the American equities markets remain extremely over bought. The FED indicated that the recession is here at least to the end of this year and they will revise their prediction of the eventual bottom of the economy in another six weeks. The US market decline will present select opportunities to astute investors seeking value by catching individual stocks that are forced down into higher value ranges.

Fed said the recent rally has no legs and was not the end of the bear market.

Many market analysts believed the rally was fueled by the growing hope that an economic recovery would start this summer. After all it is common knowledge that the market typically bottoms approximately six months before the economy bottoms. That is why the stock market is considered a leading indicator of economic activity. In fact the Fed had previously forecast in January that GDP would start to recover in the second half of this year and that the economy would grow between 2.5% and 3.3% in 2010. So the FED itself gave Jim Cramer and other analysts the hope that a bull market had begun. Now the FED has retracted that hope.

According to the minutes of the Fed's latest policy meeting the FED said that gross domestic product, the broadest measure of economic activity, is likely to expand only slowly starting next year not this summer. That means the recent rally is at least six months premature of the coming bull market. In fact the FED could postpone their recovery prediction every time they meet. The central bank had also projected in January that unemployment would peak at 8.5% to 8.8% this year and fall to a range of 8% to 8.3% in 2010. But now the FED says that it expects the unemployment rate to rise more steeply into early next year before "flattening out at a high level over the rest of the year." The unemployment rate hit 8.5% nationwide in March, up from 8.1% a month earlier.

The Treasury Secretary is refusing to comment on the much publicized bank stress tests because it is surmised that the results show the TARP program may need to be expanded another $2 Trillion to calm the banking system.

We still believe with the next pull back we will be near what will be the low for the next ten years but we caution that given this administration’s corruption, profligate spending and socialist leanings they could stagnate the American economy for the next ten years as Franklin D Roosevelt did through the 1930s and as the Japanese did to their economy through the 1990s.


Market forces

The market yesterday rose on very low volume indicating the rally was out of steam.

Investors now fear that the trillions of dollars the government will print to finance the stimulation package will have great negative currency and inflation repercussions starting in six months. FDR made the same mistake during the Great Depression. Corruption was so bad during the FDR administration that FDR chose Harry Truman to run as his last vice presidential running mate because Harry Truman was nationally known to be cleaning up corruption in Missouri. Truman had no other known qualifications other than his extreme honesty.

Market Outlook

All the signs are saying it is time to cherry pick into a positive market position and the market retests its lows. All shorts should already be covered and profit taking should be done. Now it is time to look for the new bargains.

Asian shares were up last night with Shanghai (China) up 1.4%, India up 0.6%, Japan up 3.7% and Hong Kong up 1.4%.

European markets are currently up in the range of -.1% to +0.9% mid way through their day today. .

US futures indicate the American markets will start the day flat. All the American equities markets remain extremely over bought. The FED indicated that the recession is here at least to the end of this year and they will revise their prediction of the eventual bottom of the economy in another six weeks. The US market decline will present select opportunities to astute investors seeking value by catching individual stocks that are forced down into higher value ranges.

Time to finish your analysis of stocks to cherry pick back in.

Stocks are declining now due to profit taking and the realization that many stocks advanced too quickly with no credible evidence of value. Stocks tend to maintain their relative values. When any stock suddenly advances 50% with no supporting headlines while the market advances 24% we can expect the big movers to immediately be pressured to drop 20% to realign the values. But that causes the average to decline putting pressure on all the other stocks that may have risen justifiably. That equilibrium valuation pressure contributes to upward and then downward value variances which for the astute investor represent opportunities to place limit orders to buy on the downward overshoots of stocks.

Right now you should already have been cherry picked out of the market between Jan 20 and Feb 27 when Administration market ignorance sent the market down through previous lows and resistance points and just about every stock/financial analyst hammered clueless Obama into getting informed about how free world markets work. Until then the anti-capitalist Obama administration did not realize even the Communist Chinese used our capitalist free markets and sold stocks to raise capital. Had President Obama not recently educated himself on the importance of the stock market our 401 plans were about to take another 15% decline. Instead Obama stated the importance of the stock market and although he had already caused a new sixteen year stock market low, the market turned around and rallied 24%. We now expect a decline of from 11% to a maximum of 19%. Since the market was up 24% a decline of 19% from the recent high would bring the market to down to a double bottom of this market’s all time low. Yes we believe we are near what will be the low for the next ten years but we caution that given this administration’s corruption, profligate spending and socialist leanings they could stagnate the American economy for the next ten years as Franklin D Roosevelt did through the 1930s and as the Japanese did to their economy through the 1990s.



Market forces

The market yesterday showed buying volume was drying up faster than selling was increasing. Again that is characteristic of a region where people are able to take profits in anticipation of future panic selling.

Investors now fear that the trillions of dollars the government will print to finance the stimulation package will have great negative currency and inflation repercussions starting in six months.

Market Outlook

All the signs are saying it is time to cherry pick into a positive market position. All shorts should already be covered and profit taking should be done. Now it is time to look for the new bargains.

Asian shares were down sharply last night with Shanghai (China) down -3.8%, India up 2%, Japan down -2.7% and Hong Kong down -3%. It is becoming obvious that the Communist Chinese have been falsifying economic and market data. They probably have been growing at a rate less than half of what they claim. Their recession could lead to the overthrow of socialism if it becomes severe. The emerging market funds certainly have been underperforming relative to the apparent corrupt socialist's statistics. Socialist corruption could have a negative impact on many ETFs. Why are the socialists always, always, always so corrupt, so controlling and such abusers of human rights? We should not say the word “always” except when it comes to acknowledging socialist state oppression of individual liberties.

European markets are currently mixed in the range of -0.3% to +0.6% mid way through their day today. The EU is contracting faster than seen in 40 years.

US futures indicate the American markets will start the day mixed. All the American equities markets are extremely over bought... as overbought now as they were oversold four weeks ago at the lowest point in twelve years. The US markets declining and will present select opportunities to astute investors seeking value by catching individual stocks that are forced down into higher value ranges.

It is expected that earnings reports will now be dismal but the Pravda media spin will continue be positive. The economy is now expected to decline well into early 2010 but it is clear that the market psychology is improving even though the economic news of the rate of economic decline is still accelerating slightly. We may see this bottom again in less than a year from now. George Soros made two investments in 2008. He invested heavily in Obama’s campaign and is betting on the collapse if America’s currency. He is seeking a basket of currencies and is buying the ones that will benefit and selling America short. American can still throw some of the corrupt bums out of congress in 2010 and Barron George Soros with them. Count Obama will have to wait until 2012.

Government corruption under the socialists is a cause of a growing crisis of confidence in Obama’s economic policy which seems to be the redistribution of wealth into Washington politician’s pocket books not the poor. Banking Committee Democrat-Socialist Senators are doing many property deals. To avoid the obvious corruption of buying expensive property and giving it to the Senators at an obvious illegal lower price than the purchase price, the corporations that want to bribe the Senators bought property five or ten years ago and now sell it to the corrupt officials at close to the original un inflated price. In that manner corrupt Senators profit from the five or ten years of inflation because they don’t pay for the inflation. But when they sell the property they reap the 60% to 100% accumulated inflation in price.

Why do the socialist take bribes and still force banks to give mortgages to undeserving people… when the socialists will not allow bonuses for the disgraced bankers who were forced to follow Senator Dodd’s and Rangel’s obviously inept and corrupt mortgage banking policies?

Two premature rallies so far.

If Senator Dodd had not leaked which banks were weak in mid 2008 there would have been no run on those American banks. If candidate Obama had not said we were in a depression as part of his blame game so that the public would vote out the Republicans…. there would have been no threat of a Depression and the media would not have pounded the markets last year with their pessimism. If Geithner had not recommended that Lehman Brothers be left to fail the financial markets would not have frozen. If Obama were not so ignorant of American history and economics, the market would not have plummeted on his election day and panicked again on his inauguration day.

The first Obama rally was predicated on the basis that the media would not let Obama fail and all Obama had to do was want the economy and the financial markets to recover quickly. That rally failed in January because Obama showed he was completely clueless, he thought that the stock market was just another economic barometer, and he continued his negative blame game instead of taking charge. In the mean time his popularity plummeted because he did not know that America’s retirement money is invested in American private enterprise. He was only familiar with the government handouts and corruption of Chicago community activism and Illinois politics. Five of his cabinet appointments were confessed tax cheaters and Geithner was appointed to the Treasury in spite of his falsifying information to the IRS which he now administers. Panic selling began again and the market dropped 20% quickly in February 2009.

The second Obama rally began after the financial press and especially Jim Cramer lambasted Obama for his ignorance and President Obama got briefed and then understood that the capital markets are where most capital is raised in a capitalist system and he said he did not want to destroy capitalism. After all, even China and Russia are trying capitalism and all the socialist states failed when they abandoned capitalism. That last rally has run its course now and the press is doing its best to put a positive spin on the markets and the Obama administration. The rally almost recovered the points it lost the month before and is now at the level of the first rally. A lot of people are fed up now and want to get out. The phony Obama Pravda press is now touting that “golly gee” there really never was a risk of a depression and the economy will recover this summer a full year before the stimulation package can take effect, and before Geithner has finished making the banks solvent. All the press is doing is showing that one cannot believe anything the Obama Administration says because it is all corrupt politics for personal gain and not one bit of truth. They want investors to believe it will be over this summer so investors will buy stocks right now and prove how smart the political hacks advising Obama are, and how dumb American investors really are. That is why the socialists want to take the money away from investors and give it to the government administration to invest. It is true; many individual investors believe anything their community activist tells them.



Market forces

Cash flow was out of the markets yesterday. Buying was drying up more than selling was increasing. That is characteristic of a region where people bought stocks before and are able to take profits now in anticipation of future panic selling. The trillions of dollars the government will print to spend the stimulation package will have great repercussions starting in six months and continuing to when America has a president with courage enough to end the inflation the spending will cause. The media is not reporting the truth when the truth shows the ineptness of the government. The American press has become Pravda.


Market Outlook

All the signs are saying this rally is over and it failed to set a new high by margins of 2% to 11%. Market volume has dried up showing there is very little money left on the sidelines and we are at a market level where some investors can take profits before the next Obama panic. We will wait for a buying opportunity.

Asian shares were mixed last night with Shanghai (China) up 0.8%, India up 1.8%, Japan down 0.3% and Hong Kong down 0.3%.

European markets are currently down in the range of -1.3% to -2% mid way through their day today.

US futures indicate the DJI will be down sharply at the start today, over 100 points in the DOW. All the American equities markets are extremely over bought... as overbought now as they were oversold four weeks ago at the lowest point in twelve years. All the US markets are near their January highs and strong resistance levels.

It is expected that earnings reports will now be dismal but the Pravda media spin will continue be positive. The economy is now expected to decline well into early 2010 but it is clear that the market psychology is improving even though the economic news of the rate of economic decline is still accelerating slightly. We believe we have seen a local stock market bottom but this is still a trader’s market and we expect to see this bottom again and again at the most unpredictable times similar to as occurred between 1973 and 1982. We may see this bottom again even a year from now if Soros is successful in destroying the American dollar. George Soros made two investments in 2008. He invested heavily in Obama’s campaign and is betting on the collapse if America’s currency.

Government corruption under the socialists is a cause of a growing crisis of confidence in Obama’s economic policy which seems to be the redistribution of wealth into Washington politician’s pocket books not the poor. Banking Committee Democrat-Socialist Senators are doing many property deals. To avoid the obvious corruption of buying expensive property and giving it to the Senators at an obvious illegal lower price than the purchase price, the corporations that want to bribe the Senators bought property five or ten years ago and now sell it to the corrupt officials at close to the original un inflated price. In that manner corrupt Senators profit from the five or ten years of inflation because they don’t pay for the inflation. But when they sell the property they reap the 60% to 100% accumulated inflation in price.

Why do the socialist take bribes and still force banks to give mortgages to undeserving people… when the socialists will not allow bonuses for the disgraced bankers who were forced to follow Senator Dodd’s and Rangel’s obviously inept and corrupt mortgage banking policies?

Don’t buy now, buy after the pull back.

The Re spiral method that uses the MACD and the Parabolic SAR has indicated that the next pullback will be a buying opportunity.

This will not be a normal recovery. This recovery depends on fiscal spending for stimulation, FED monetary policy for anti-inflation measures, plus a new massive printing of money because China and Japan will not buy all debt the US needs to shed in the process. Zero FED interest rate will not stimulate purchases of US debt so they are now printing money to provide the additional money to spend. The Europeans refuse to do the same so that means US currency will come under repeated devastating attacks. Each attack will disrupt trade and cause unpredictable changes in exchange rates that will result is large destabilizing losses and gains that depend on when the exchanges occur. For the first time we will see large international companies brought to their knees as mistakes are made. There will be large swings in the values of equities, price inflation to hedge against currency losses and bonds will be under periodic and accelerating attack. A currency storm is brewing.

We believe we probably have seen the stock market lows but we will likely see them two or three more times before the world economies settle and recover. And when the recovery occurs we will see high taxes on hydrocarbons and a lot fewer automobiles on the road.


Market forces

Cash flow was again slightly positive into the markets Friday. The media is not reporting the truth on volume. As we have said before, three of the US market indices publish identical volumes which we have found to be fabricated and anybody who knows anything knows those volumes have been incorrect since early 2005. Volume is not high as they indicate. The actual volume during the recent rally has been average to disappointing. The rally volume and cash flow has been weak and over hyped.

Obama socialist threaten publicly to replace many bank executives with Democrat Socialist political hacks to channel more taxpayer cash handouts into Democrat-socialist campaign coffers.


Market Outlook

All the signs are saying this rally is over and it failed to set a new high by margins of 2% to 11%

Friday’s surge was again on average volume. It did however put the Parabolic SAR and MACD back in a countdown towards a buying opportunity on the next decline. The last decline was preceded by an outright sell because as Jim Cramer pointed out… the Obama administration had been ignorant of economics. Now the Obama administration is more knowledgeable so the Obama market collapse seems to be over for the moment. However the battle for a recovery has not even started. The stimulation package hasn’t even started and will not be up to full speed until the next election year in 2010. That is when the currency crisis will be getting up to full disruption too.

Asian shares were positive last night with Shanghai (China) closed, India up 1.8%, Japan up 1.2% and Hong Kong up 3.1%. Asian markets did not have as severe a collapse in February as US markets had due to Administration exhibitions of ignorance. Therefore the Asian rallies have set new highs above their January highs. They continue to lead the world markets. But they will become erratic when the currency storm arrives.

European markets are currently up in the range of 0.3% to 0.7% mid way through their day today.

US futures indicate the DJI will be flat at the start today. All the American equities markets are extremely over bought... as overbought now as they were oversold four weeks ago at the lowest point in twelve years. All the US markets are near their January highs and strong resistance levels.

It is expected that earnings reports will now be dismal but the media spin will be positive. The economy is now expected to decline well into early 2010 but it is clear that the market psychology is improving even though the economic news of the rate of economic decline is still accelerating. We believe we have seen the stock market bottom but this is still a trader’s market and we expect to see this bottom again and again at the most unpredictable times similar to as occurred between 1973 and 1982.

Government corruption under the socialists is a cause of a growing crisis of confidence in Obama’s economic policy which seems to be the redistribution of wealth into Washington politician’s pocket books not the poor.

Jim Cramer said, “Don’t buy now, buy after the pull back.”

We believe the rally will now falter and estimate the pullback will be between 15% and 25%.

If you look at the market highs of early January, the lows of early March and the highs now in early April you realize that not only was the March decline the worst since the 1990s but the current highs are still 4% to 13% lower than the previous January highs. Declining lows and declining highs is not bullish despite the last gain of over 24%.

................H.........L.........H........Loss......Gain......PtoP Loss
DJI.........9175...6440...7978...-29.8%..23.9%.....-13.0%

S&P..........944.....667.....834....-29.3%...25.0%....-11.7%

NASDAQ.1666....1266....1603...-24.0%...26.6%.....-3.8%

The table shows the previous DJI high in early January and the March low in early march compared to yesterday. It shows the loss from January to March was 29.8% and the gain from March to April was 23.9%.

The recent peak to peak DJI loss is still 1197 points or 13%.
The peak to peak S&P loss is still 110 points or 11.7%.
The peak to peak NASDAQ loss is still 63 points or 3.8%

A bull market is not defined as a greater than 20% upward move. But that is nonsense because the move was preceded by a 30% decline the month before. The unprecedented chaos just means the market is volatile. A bull market requires there be a new high and ascending lows. The DJI will not produce a DOW buy signal until it rises more than 1197 more points. The market will probably test its bottom again before it is time to buy.

The recent rally put the re-spiral/MACD indicators back on track for a countdown to a buy signal. But remember the best time to buy is between when the first buy signal occurs and the re-spiral second buy signal (the confirmation signal) occurs. But it is not time to buy yet.


Market forces

Cash flow was slightly positive into the markets yesterday even though half the gains were whipped out by the end of the session. Volume during this most recent rally was barely more than the 50 day moving average. That is not good. This current high is significantly lower than the previous high… and that is not good. The last low was lower than the previous low… and that is not good. Finally the monthly market swings are now greater than + or - 20%... and that is chaos.


Market Outlook

All the signs are saying this rally is over and it failed to set a new high by margins of 4% to 13%
Yesterdays surge was again on low volume. It did however alter the recently negative Parabolic SAR and MACD trading trends and put them back in a countdown towards a buy signal. This is still a trader's market not a long-term investors market but after the next major decline it may be time to buy again.

Asian shares were flat last night with Shanghai (China) down 0.2%, India up 0.2%, Japan up 0.3% and Hong Kong up 0.2%.

European markets are currently mixed in the range of -0.4% to 0.8% mid way through their day today.

US futures indicate the DJI will be down about slightly at the start today. All the American equities markets are extremely over bought... as overbought now as they were oversold four weeks ago at the lowest point in twelve years.

It is expected that today it will be reported that layoffs are accelerating indicating that the recession is still accelerating. The economy is now expected to decline well into early 2010 but it is clear that the market psychology is improving even though the economic news of the rate of economic decline is worse now than ever before in 60 years. But America has always come through in the past. We hope that this next market decline will finally show that the stock market has passed the low for this recession.