Countdown at X minus one

There will be a correction very soon or prices will get so overbought that there will be a stock market panic again.

No one in the current administration knows what is going on as they throw money at everything hand over fist. See this example of lack of oversight.

http://dailybail.com/home/there-are-no-words-to-describe-the-following-part-ii.html

Lack of oversight goes with corruption. Corruption of government leads to economic failure.


Market forces August 11
The communist and socialist nations support the looting of the USA as a way of destroying worldwide free enterprise and individual freedom and establishing a world socialist state without the need for a war. Inflation is the way the socialist loot productive workers. It creates capital gains to push people into higher tax brackets and to create fictitious income.

600,000 unemployed to have unemployment benefits expire this month unless its term is extended again.


Market Outlook

The recent rally has the market in a highly overbought position again. We expect U.S. stocks to continue with slides that represent buying opportunities and then wild optimistic appreciation (as we have now) that can be times to take profits. This may very well be a consolidation period not a distribution period. That means that the sharp drops in some sectors may be funds cleaning out the sellers. But it that is true it would be unusual not to have a sharp sell off panic from time to time. Summer and early fall is usually a time when markets decline.

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 up slightly: communist China up 0.7%, socialist Japan up 0.6%, and socialist India up 0.4%.

Today most of the socialist European markets are flat in a range of 0% to 0.4% half way through their session.

US futures indicate a slightly lower USA market opening this morning.

Anticipate a panic spike down any time now as a buying opportunity. For instance, stocks that have gapped up and rose sharply often drop down to close the gap. A gap is when a stock opens much higher than at any time the previous day and has not yet been covered by a subsequent decline.

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.

The new socialist administration seemingly destroys every free market sector they touch. Hedge funds seem to be betting that the Obama bill fails. But if his socialized medicine passes in any form whatsoever we expect health care stocks to implode as they did when Obama first announced his plan. Communists and socialists think "profit" is a dirty word. Mediocrity reigns greatest where inept and corrupt socialist governments rule.