American technological creativity is now being crushed by Obama

Market churning is what they do at market tops

At market bottoms they scare you into selling. At market tops they tell you that it is a good time to buy even at the peaks after a run-up of 48% in three months. They churn investors at the top.

No one needs to be told how the con men can twist facts and words to sell someone a lemon or a clunker. We know the same people who said buy-buy-buy all through 2007 and 2008 are out there right now saying buy-buy-buy. That is the only thing they know because they generally invest very poorly themselves and depend on the rest of us for their commissions or their TV entertainment income. They are terrible investors themselves or they would not be working for our commissions or entertaining us. And so they have a clear conflict of interest. They must sell you a bag of goods in order to make a living. And so they also spin everything positive when things are going up and then they scare the pants off of us when things are going down. That is known as churning and that is what it has been called since the panics of the 1800's. Right now they are selling us stocks that in their business they call pigs with lipstick.

Churning refers to moving stocks when there is nothing financially going on that justifies investment activity. Churning is how many get commissions while actually providing a disservice to investors. That is what they have been doing for months now.

Well, folks we have other alternatives. There are bond funds that are doing much better than the bank and there are RE partnerships and direct real estate investment opportunities galore out there right now. Real estate is now down about 30% nationally not 16%. It is down 16% just in the last year not since the real estate market peaked in 2006.

Our record is on the web going back more than four years. You can search for it on the web under "Suite 101" plus "BoltonCT" or also plus "respiral". Our record is pretty good and right now it probably is clear that we have another stock market bubble. Volume is so low that a small amount of buying has driven stock prices up 80% in some sectors since this past March. That happened in the Great Depression too. And then stocks hit an even lower bottom. Get smart and get out with profits while we can.


American technological creativity is now being crushed by Obama's socialist legislation

Creating a depression is no small effort. The USA has had dozens of stock market panics and recessions but just one depression. FDR started out thinking European socialism was great and he took a bad recession and made it into an economic depression just like they had in the other European socialist nations. We now have left wing socialists at the helm of most of the world economies. They live in a make-believe fantasy world.
1) They want to redistribute wealth from the creative, smart, and productive populations to the laid back, ignorant, and corrupt con artist sub cultures. Haven't you gotten dozens of scam emails like the rest of us?
2) They want to use cap and trade to redistribute wealth using the hoax that productive populations are causing a global meltdown when this glacial cycle has happened more than ten times on earth before mankind even evolved.
3) They want to have your personal health and financial records computerized so that the corrupt politicians can have access to it to make sure you follow the rules and give to them and do what they demand.
4) They are willing to destroy the best health care system on planet Earth so that 40million people who already get free health care in America will get it as an entitlement. They will then be entitled to bog down the system because it will be their right, not a gift from the producers and workers of America.
5) Our medical and other research programs are the envy of the world but they intend to shut it down to pay for their redistribution of wealth. They are so stupid that they say that the research only benefits the rich.
6) They plan to put the whole burden on Americans who do the work that has made America the richest nation on the planet. Essentially they want to control and effectively enslave the productive people as the failed Soviet Empire did until the people realized that it was a lunatic make-believe existence where the workers pretended to work, the government pretended to pay them, and the dissidents were sent to the Gulag prison system to be beaten and freeze to death. When the Soviets conquered East Germany they dismantled the factories and rolled fragile sophisticated German machinery into boxcars literally rendering the equipment useless to East Germany and the Soviet Union. America did the opposite and made friends of our enemies. When the iron curtain came down we discovered they had acquired our sophisticate jet engines and could not even copy our technology because they lacked knowledge. We discovered that the jet engines of the Foxbat only lasted the length of the flight when they set records. American military engines that set records lasted 10,000 hrs and our commercial engines last 30,000 hrs.

Bush inherited a recession and a terrorist attack after Clinton who exposed us to attack by substantially dismantling the CIA, FBI, and our military. Bush gave us tax cuts, strengthened the economy and kept us out of a depression. He left Obama a recession and Obama called it a depression to make Bush look bad, to undermine confidence in the banks and to get himself elected. No previous political campaign since the great depression ever endangered America's economic health that way.

President Obama thinks European socialism is the answer and he took a bad recession and is now making it into an economic depression by dismantling the American economic engine of creative destruction, free enterprise, and liberty. Yes, American creativity is so rapid that before socialist nations can copy what we do we have destroyed yesterday's technology by making it obsolete. That is how we survived Japanese copycats, China's piracy and theft of software etc. Yes American technological creativity is now being crushed by Obama socialist legislation.

Market forces August 14

The Wall Street euphoria had been based on their assumption that the socialist destruction of the worlds best medical system will fail. But the socialists are actually dismantling the American engine of creative destruction, free enterprise, and liberty. Hover gave RDR a recession and socialism made it into a depression until WWII forced FDR to restore the American engine of creative destruction, free enterprise, and liberty. President Obama has stated that we must be more like the European socialists and he now completely controls the political machinery.

It is going to get a lot worse when Obama succeeds with his legislation. Those pump and dump stock market "let the good times roll" spinners are setting investors up for another market blood bath because they are not even as smart as the Obama socialists.


Market Outlook

A panic sell off of 25% in one day similar to 1987 is now a growing risk.

Hundreds of billions of dollars are flowing to the sectors of the American population that have the least skill at managing money. It is a bailout of all the folks who defraud credit companies and banks. It is a bail out of all the folks that Senators Rangle and Dodd said should be given houses "no questions asked about affordability." We are seeing many on Wall Street getting multi million dollar bonuses for their part in the corruption of mortgage investment instruments. We are seeing federal tax cheats appointed to oversee the US finances. We see no attempt to monitor the $Trillions being thrown into the black hole of redistribution. They are still allowing mortgages "no questions asked."

If it were not for the incompetence of all the many socialist and communist governments of the world the incompetent American government would be under water today. The socialist world is like a high school where all the lazy, cheaters, and mediocre majority get together and hassle the good students to study less. That way they get the grades lowered and achieve greater equality. That makes the good teacher looks too strict and the lazy get to look like average students. They thus eliminate the inequality of grades caused by good students and achieve the equality of mediocrity. Obama is moving America from the inequality of affluence toward the equality of world poverty. The USA has a long way to fall because the USA used to be the world's best student.

Yesterday had continuing indications of the market topping out. Volume declined another 5% and the high for the day was no higher than the high the previous day. The spiral or parabolic SAR indicated the time to sell on August 11 and the MACD dropped to zero for the last two days. Once both go negative the buying window will be shut based on the methodology "respiral" we have documented since early 2007.

We definitely see bubble psychology everywhere again. We would not buy at these elevated prices but instead seek alternative investments such as corporate bonds except when individual stocks correct (more than 10%) and offer real buying opportunities. The recent rally has the market in an extremely overbought and exhausted position again. If you have been buying stocks when they were low you are finding you have some large profits now. You need to consider selling them (or enough to capture just their costs) if you do not want to lose capital when the next market panic occurs.

Last night Asian markets were down from the previous day: Communist China down -3%, socialist Japan up 0.7%, oligarchy Hong Kong up 0.2%, theocracy Jakarta down -0.4%, and socialist India down -0.7%.

Today most of the socialist European markets are up in a range of 0.2% to 0.6% half way through their session.

US futures indicate a slightly lower USA market opening this morning. The financial sector is particularly overbought with commercial debt about to crash through the roofs.

We anticipate a panic spike down any time now as a potential buying opportunity. We must be 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 into and now also out of the market rotating before or when the funds rotate through the sectors. We expect the decline will be a typical rotation with sharp drops in some individual stocks/sectors while other stocks/sectors bottom out or rise and then decline so the change in the market indices will be much smaller. The advances will be similar but opposite.

Investing time is now compressed and hence investing requires more trading skill. 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.

US stocks are up 47% and emerging markets are up 80% in just five months so be careful.