Countdown is at X minus two

GE leaped 10.4% while we were away five business days. It appears that GE's financial sector will now survive intact. GE-Wal-Mart working together could be a very profitable partnership.

We're back and we think this market has at best two more days of life. Why? Because this eighteen-day rally seems too good to be true given the oversold condition and the history of major market lows occurring in September and October.

Does the market have to go down now? Certainly not! It could first explode upwards in a massive bull market trap and then collapse in a wild panic as it has done so many times especially in the 1930's and 1970's. In the later part of the 1970's many new investors bought in after Lyndon Johnson's massive "guns and butter" spending spree were so confident that they were far out on the limb on margin driving stock prices higher when in two late summer panic years they lost everything.

No if the market does not begin a correction before August 13 we expect another run-up and then a panic. GE is also in a particularly lucrative position as the owner of GE/MSNBC/Pravda which gives corrupt American politicians $billions in free continuous lobbing support and well as campaign attacks on anyone interested in American free enterprise or government fiscal responsibility.

Lately the Democrat-Socialist Congressman have come up with conspiracy theories saying that people who do not like their slow communist takeover are not middle class working taxpayers but the decadent conspiring bourgeois instead. They are true Marxists-Leninists when it comes to suppressing the minority of thinking American people.

Here is Obama's response when he backed off from his decision to let the military pay for their own medical expenses... what an empty headed person he must be... send this to everyone you know to show them just what he thinks of our military who fight for our country and get hurt and killed protecting our freedom!

Check out Snopes.com's response to this message at:
http://www.snopes.com/politics/obama/veteranshealth.asp

"Bad press led to President Obama abandoning his proposal to require veterans carry private health insurance to cover the estimated $540 million annual cost to the federal government of treatment for injuries to military personnel received during their tours on active duty.

The President admitted that he was puzzled by the magnitude of the opposition to his proposal."Look, it's an all volunteer force," Obama complained… "Nobody made these guys go to war. They had to have known and accepted the risks. Now they whine about bearing the costs of their choice? It doesn't compute...”

"I thought these were people who were proud to sacrifice for their country," Obama continued. "I wasn't asking for blood, just money. With the country facing the worst financial crisis in its history, I'd have thought that the patriotic thing to do would be to try to help reduce the nation's deficit. I guess I underestimated the selfishness of some of my fellow Americans.""

Two things are infinite: the universe and human stupidity; and I'm not sure about the universe.
-Churchill

Market forces August 10
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 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.


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.

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: communist China down - 0.4%, socialist Japan up +1.1%, and socialist India down -1%.

Today most of the socialist European markets are flat in a range of -0.6% to -1.2% 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.

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.