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.