Obama fiddles while allied troops in Afghanistan have their worst month in history.

Obama needs more time to decide whether to support American troops or use federal funds instead to buy more votes with taxpayer handouts.

The WSJ today reports that Ford unions seemingly seek to destroy Ford, the last free American carmaker, from the inside. Meanwhile the biggest nationalized carmaker union is supporting another massive taxpayer bailout. Ford had been doing well because it was not nationalized but the Obama supported unions may destroy Ford since Obama will give the unions anything they want for their vote for his socialist policies. The WSJ reports that the unions and activists were demonstrating in Chicago Tuesday asking more bailouts for Barney Frank's supporters who cannot afford to pay for a house. So they are demanding yet another democrat-socialist personalized Barney Frank bailout.

This week we are hearing relatively good economic news but the hedge funds are selling. Volume dropped slightly yesterday as the market showed little direction.

The Conference Board's consumer confidence index slipped to 47.7 in October from 53.4 in September. It is better than before summer but has been flat for four months.

Previously it was considered good news when home sales rose a little as prices fell. But now for the first time the home Price Index also rose as sales improved. This is good news as it is a sign of stabilization in housing. On the other hand WSJ advertising of commercial real estate that has gone on sale has surged as malls have been stressed. However based on recent shopper turn-out we predict both consumer sentiment and commercial real estate will also be showing signs of improvement in next months reports.


Wednesday, Oct. 28 am:
Durable Goods Orders
New Home Sales

Thursday, Oct. 29 am:
Unemployment Claims
GDP (3rd Q)

Friday, Oct. 30 am:
Consumer income & spending
Chicago Purchase Manager Index
Consumer Sentiment


Market forces October 28

Previously we reported that the very good economic news last week was spun negatively while corporate insiders have been selling their holdings by a ratio running 40 to 1 since September 1st. Now we have mixed news spun more negatively by the media and even Jim Cramer. That tells us both corporate insiders and Wall Street insiders do not think this rally has much further to go. Profit taking continues to be advisable.

Asian markets were down again last night; China up 0.3%, Hong Kong down -1.8%, India down -0.4%, Japan down -1.4%, and Seoul down -2.4%.

European markets are down sharply in a range from -1.6% to -1.7% this morning about half way through their day. They tend to follow American futures that are up slightly at this time.

US pre-market futures are down 0.6% today at 8:00 AM EST worse than they were before the Friday, Monday, and Tuesday sell-offs.