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?