Yesterday was April bull's day. Will we look back and say it was April foolish bull's day?

The end of neo-socialist economic fear mongering has lifted the market psychology and we are now in an extreme overbought market condition. The negatives of socialist national debt, higher taxes, and a high "Misery Index" have not started to sink in yet. Americans are now being laid off at the highest rate in history but now that the trillion dollar spending bills have been passed the socialists are euphoric.


Market forces

Cash flow was again out of the markets yesterday. But the first day of the fund’s second quarter got off to a good start. MSNBC continues to apply lipstick to the stock market. Asian and European markets have soared as the dour socialists have become happy with the $billions they can redistribute to ACORN and other friends back home. They will be creating many millionaires and putting incompetent socialists on the boards of all the banks and corporations that take any government assistance.

It is expected that the new socialist GM board members will ensure that if GM goes under the USA will guarantee all the 90% pensions that union members have and will get when they retire at age 55 or older. It is the unions who are driving the US automobile industry out of business and who have refused to compromise even now. Now the auto companies can go out of business and taxpayers will pay the union members for doing nothing. So what is new? What a great rich benevolent country we have. And yesterday Obama told the world economic summit that we must redistribute American wealth to the whole world. God bless the socialists! They don't like to pay their own taxes but they know how to have a good party and they do take care of the indolent voters. The poorer Americans become... the greater the number of socialist leaning voters. Socialism grows as countries get poorer and the indolent slowly become the voting majority. And so socialists have an incentive to screw up every economy in the world.


Market Outlook

Yesterdays surge was again on low volume but apparently caused by a slowing of the rate people are leaving the market. It did not alter the recently negative Parabolic SAR and MACD trading trends but a continued buying surge could make those trends positive again. This is a trader's market not a long-term investors market and cash was still flowing out of the market yesterday.

Asian shares were up last night with Shanghai (China) up 0.7%, India up 4.5%, Japan up 4.4% and Hong Kong up 7.4%.

European markets are up in the range of 3.3% to 4.8% mid way through their day today.

US futures indicate the DJI will up about 200 points at the start today. That is 50 points more than the market rose yesterday. 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.

Euphoria is a sign of a market peaking. The volume was low yesterday and cash flowed out of the market for the second day in a row. 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 US history. But America has always come through in the past.