Cap and Trade would rip off productive nations on a massive scale and subsidizes world incompetence, ignorance, indolence and evil.

Market forces June 30

Funds hastily pretty up their portfolios as the second quarter ends today. Yesterday's volume declined 30% as stocks edged higher. There are what look like short squeezes going on in selected stocks that funds hold and are buying heavily.

The vast numbers of stocks being replaced in the indexes causes another major distortion in index prices. The NASDAQ replaced the greatest number because so many former NASDAQ stocks could no longer make the capitalization limit.

Market Outlook

Market volume collapsed again yesterday as the market rose. It indicated very few buyers at these high prices and very few short sellers willing to risk going up against the institutional owners who buy into their existing portfolio to temporarily raise their performance just as the quarter closes. Short sellers probably will come in at the very end today after the funds exhaust their cash reserves buying to drive up their portfolio values.

The securities firms should profit handily this quarter.

The recent rise in oil prices is attributed to the restless natives in the Nigerian delta attacking Nigeria's incompetent defense forces, blowing up wells and flooding the Atlantic with oil and the atmosphere with natural gas. Most of Nigeria's natural gas is normally burned off anyway polluting the atmosphere and amounting to a 50% waste of Nigerian's natural resources. Per capita production of CO2 and consumption of energy resources in developing nations like Nigeria runs at double that of the developed world. The USA is one of the most efficient users of energy in the world and the most productive on a per capita basis. The international socialists see USA wealth as unfair and they want a piece of the action. The great Cap and Trade heist of American wealth is an inside job since George Soros and the other international highway robbers have bought the seats for their socialist friends in Congress.

"Cap and trade" is the biggest con of this decade. The Socialist-Democrats in the House are a national disgrace and just passed that bill. It now goes to the US Senate. The majority of world scientists have publicly signed petitions declaring that the stupid Al Gore theory is a farce and leads to economic thievery. It is intended to rip-off productive people on a massive scale and subsidizes world incompetence, ignorance, indolence, and evil. The cap and trade bill would distribute American wealth to the third world and to Europe. Europe will just continue to export its dirty industries to the third world. China, India, and Africa already have the most deadly concentrations of pollution. It is a form of coercive foreign aid where the Obama administration probably will stupidly accept Americans being accused of killing the planet. Cap and Trade is not a way to clean up the planet it is only a massive American foreign aid program legally forced upon American entrepreneurs by the stupid socialists in Congress that think Al Gore is some sort of genius.

Last night most Asian markets were generally down again: China down -0.5%, Hong Kong down -0.8%, Japan up 1.8%, and India down -2%.

Most European markets were down this morning in a range of -0.2% to -0.5% half way through their session.

US futures flat-lined at the start today.

We will be cherry picking into the market during what we expect to be about two months of market decline.