Obama Voodoo economics consists of robbing productive people to buy the votes of the growing welfare class the socialists are creating.

Market Outlook

Investment advisor Sy Harding announced yesterday that this year is not the statistical average year and the market has gone up and down just the opposite of the statistical average year. Therefore he is not predicting the normal end of year rally this year.

Jim Cramer and others indicate they would like to see a good 10% correction now. Just as they talked up the market for several months they now talk down the stocks they don't own. They would like a 20% decline in the junk cyclical stocks that still do not show positive earnings. They now only favor stocks with continuously advancing earnings power such as Apple. The net decline they describe would be 3% to 10% with a 20% hit in what they call the junk stocks. Consequently the funds appear to be hypersensitive and skewed negative at this time causing sudden declines like the 1.5% decline in the last hour yesterday when the market went from up 0.5% to down 1% for the day.

The Senate will decide soon whether to extend unemployment benefits or let 7000 people each day lose their unemployment benefits. Ending benefits would therefore cost the Senate 7000 additional election votes every day. Can you guess what the Senate will do?

Yesterday the FED's released their Beige Book minutes of September's meeting. Here is exactly what they said.
" Office of the Secretary memorandum, September 18, 2009.
Subject to review and determination by the Board of Governors, the directors of the Federal Reserve Banks of Boston, Cleveland, St. Louis, Dallas, and San Francisco had voted on September 10, 2009, and the directors of the Federal Reserve Banks of New York, Philadelphia, Richmond, Atlanta, Chicago, Minneapolis, and Kansas City had voted on September 17 to reestablish the existing rate for discounts and advances (1/2 percent) under the primary credit program (primary credit rate).

Federal Reserve Bank directors cited signs of an increase in economic activity and commented that prospects for growth during the second half of this year had improved. Some directors also noted that home prices appeared to be stabilizing. Nevertheless, directors generally regarded overall economic conditions as weak and financial markets, particularly the banking sector, as still strained. Household spending remained damped, constrained in part by job losses and consumer caution. However, some directors noted that businesses' inventories were now better aligned with sales. Inflation was generally seen as subdued and likely to remain so for some time because of considerable resource slack and modest inflation expectations. In these circumstances, directors agreed that the current accommodative stance of monetary policy remained appropriate."



The days ahead:
Today, Oct. 22 AM
Unemployment Claims are expected to be leveling off but with statistical ups and downs.
Leading Economic Indicators are expected to continue to say recovery is under way.

Friday, Oct. 23 AM
Existing home sales may actually increase due to foreclosures and the coming expiration of the first time buyer's tax credit of $9000.

Relative to the declines seen last year (i.e. seasonally adjusted) this will be a week of positive reporting. But relative to last month's reports this week will likely show several economic sectors remain in decline.


Market forces October 22

Hedge funds are shorting the market now in hopes of causing another correction in their out-of-favor-stocks that have taken a ride up with their favorites. They could succeed soon in toppling the market. For sure the market will react negatively the first time the FED raises their rates. We recommend taking profits.

How can anyone be truly optimistic that the socialists won't put America into another 1930's type depression until the Voodoo leftists are democratically voted out of office in 2010? Obama's money printing presses are roaring and he is giving out checks now to his supporters to buy votes just as every banana republic dictator does. In Detroit they were recently went to pick up their Obama checks. Obama Voodoo socialists say welfare is an economic stimulant but not tax reductions that stimulated the economy in the past! How confused these leftist lunatics are! They know they are giving the checks to buy votes to stay in power.

Asian markets were down last night; China down -0.6%, Hong Kong down -0.5%, India down -1.3%, Japan down -0.6, and Seoul down -1.4%.

European markets are down in a range from -0.7% to -1.1% this morning about half way through their day.

US pre-market futures are down today but rising towards positive territory at 7:30 AM EST.