Amazing! China is now down 14% in just the last six weeks.

Amazing! China is now down 14% in just the last six weeks.

Last night the world ignored the advance in USA markets. China fell another 4.3% after a small rise during the first half of the session. Within hours all of Asia followed China downward.

We were the first eight months ago to recommend buying emerging market stocks at their lows and we were the first weeks ago to reverse that and warn to get out of the emerging markets when it was near the highs. Jim Cramer followed us months later recommending them but he still has not warned about the emerging markets. The problem with emerging markets is that they were confused by their past growth and their pot of cash and did not realize their world was collapsing around them. And MSNBC/Pravda thinks this current correction of 2% is over? Even Europe is ignoring the USA today and is following China.

Market forces August 19

If you follow the price action over the past month you see it now resembles the manipulated Japanese markets of the late 1980's. The Japanese by exercising control could beat down any speculator who went against the stable trend they established. That resulted in their markets becoming abnormally stable and hence the drop in volatility and the drop in market volume.

We have seen the same now in the USA for the last rally. Volatility and volume have declined and the market price fixers took the USA markets up 50% and the Asian markets up 80% in less than five months. By carefully controlling liquidity behind the scenes Alan Greenspan silenced the 1987 USA October panic in a matter of days. In Japan they have for more than thirty years controlled Yen exchange rates and not one dares to challenge them, not even the USA when we know they were doing to the USA what China now does to the USA. China now follows Japan and fixes the exchange rate to make American products more expensive in China so that they can manipulate a better balance of trade.

Yesterday the US markets rose and the market volume (the shares traded) dropped another 14% from the previous day when the market had declined 2%. Our respiral analysis that uses the MACD and the parabolic SAS say the window of opportunity for buying is shut.

Warren Buffett said `Gusher' of U.S. federal debt poses risks to economy, and dollar. The U.S. must address the massive amounts of “monetary medicine” that have been pumped into the financial system and now pose threats to the world’s largest economy and its currency.


Market Outlook

This blog has been told it will be removed within twenty days if it continues criticisms of marxist-socialism and does not request a review by the censors. Suppression of the freedom of speech is something new to America and now you can report blogs like this and the US government will "encourage" the blog masters to shut it down. Yes, there is now an official White House blog in which the Obama administration asks supporters to report back sites like this. And apparently someone reported us as anti socialist.

For more information use either of these terms in your search.

Foreignpolicy censoring voice america
or
idiotsforobama


The Chinese people are beginning to rebel against communist policies aimed at privatizing failing industries so that the suffering people will not attribute it to failed socialist policies but instead attribute it to free enterprise.

In the USA people are beginning to rise up as well against socialist lies claiming a failure of American liberty and free enterprise. It is becoming evident that socialist campaign lied about the coming of another great depression last year to create the market panic that they achieved. Then the socialists used the opportunity to squander America's wealth by redistributing it to themselves and ACORN, unions and their other allies. They nationalize GM and destroyed Chrysler with socialism while blaming it on capitalism. Now the recent market rebound has been orchestrated to make it appear as though socialism works. But Americans are not stupid.

Americans now see that the socialists want to change the US Supreme Court so that it does not give blind justice anymore but is instead sensitive to culture. Not all cultures have a strong work ethic. Americans now know that Obama is on record as saying our forefathers were wrong and our American Constitution needs some changes to facilitate the redistribution of wealth and the disarming of citizens.

Americans initially attributed the rising stock market to the widespread relief that Obama's socialism was failing. The opposite now seems to be true. The American resistance to the socialist railroading through of Obama's Cap N Trade and socialized medicine has necessitated the socialist manipulation of the American stock market to try to quiet the opposition. Now Obama is doing what the Japanese and the communists have always done. But the manipulation of markets as socialists and communists do is built on lies and always ultimately fails. By 1990 the Japanese manipulated themselves into a hole so deep they are only just now emerging again 19 years later. The Chinese manipulation of exchange rates and their markets will ultimately lead to a collapse of their attempt at free enterprise. And likewise the Obama-FED-Treasury manipulation will only lead to a real Great Depression if it continues. Free enterprise had many panics and recessions but it took the rise of worldwide socialism and FDR after World War 1 to cause a Great Depression. Until this recent venture of China into free enterprise there has never been a communist state that did not exist in a continuous Great Depression. And it is a lie to claim that western socialism in Europe has ever been successful. Once the American engine of free enterprise is silenced by Obama socialism Europe will slip back into the dictatorships that characterize all true forms of socialism. Every socialist leader wants to be the dictator for life and systematically eliminates his competition. As long as America bailed out the Western European socialists, all was well and they could live in luxury and mock Americans. Those will all go down the drain when the socialist democrat machinery silences the American engine of liberty and free enterprise.

Last night Asian markets fell: Communist China down -4.3%, socialist Japan down -0.8%, oligarchy Hong Kong down -1.7%, Jakarta is down -2.5% and India down -1.5%.

Today most of the socialist European markets are down in a range of -0.6% to -0.8%

US futures are down 0.8% now at 7:30 EST before the market opening this morning.

Myron Scholes joined Robert Merton, with whom he shared the 1997 Nobel prize for economics, in calling for banks to give investors a clearer picture of their worth by providing fair-value data on their illiquid assets. That would be similar to mark to market values and would show that many banks are insolvent. The financial sector is now on the brink of another collapse,

We must be continually capturing profits on the rallies and then finding better buys on the declines. That is called cherry picking the best buys. We will continue cherry picking mostly in and out of the market rotating before or when the funds rotate through the sectors. Beware of the financial stocks at this time.

Time is now compressed and hence investing requires more trading skill. So far this year Jim Cramer is rotated his advice three times from defensive stocks to cyclical stocks. In other times he would have held tight for a year or more. We watch the sectors carefully because hedge funds seem to deflate one sector at a time and then let investors pump them back into overbought territory. They can do that best during the kind of rallies we see in this sideways market. Buy after they deflate a sector when there are bargains. The hedge funds move quickly in and out so after they move in it is usually too late.