Administration and MSNBC/Pravda's loony leftists already excuse the hateful behavior of the murderer at Ft. Hood by fabricating a new stress reaction

Administration and MSNBC/Pravda's loony leftists have already excused Nidal Malik Hasan's murderous rampage at Ft. Hood by inventing a new stress reaction that one can develop from seeing other people's stress reactions. The lunatics say we must all continue to pretend these Ft Hood killings and the killings of Hindus, Buddhists, atheists, Christians and Jews around the world have nothing to do with the Moslem's institutionalized religions belief in hatred for and Jihad's against all infidels (i.e. all non Moslems).

The D.C. sniper mastermind John Allen Muhammad was executed last evening for the attacks that terrorized the Washington DC a few years ago.

Market Outlook

The Congress took two weeks beyond the expiration of the last unemployment extension to once again extend the unemployment compensation period. That means that many of the unemployed were no longer listed as unemployed when they exceeded the first extension. That could make the unemployment statistics optimistic and then pessimistic again as the unemployed are de-listed and then re-listed. Therefore if the figures become very good in the next week we would accelerate getting out of the market and into cash because they will only get much worse again.

This week
The Group of 20 nations agreed to maintain stimulus efforts and metals prices rallied.

FED released Nov 9 2009 quarterly loan officer survey results on Bank Lending Practices
The banks indicated that they continued to tighten standards and terms over the past three months on all major types of loans to businesses and households. Banks indicated that they expected to tighten many of the terms and conditions of credit card loans as a result of the recent legislation, with the notable exception of penalty fees and the length of the grace period for payments. The tighter bank lending standards reinforce the FED's decision to keep rates low. There were many planned Federal Reserve officials' speeches yesterday that have been interpreted positively as a green light to buying up dollar-denominated assets while selling the greenback.

Yesterday the National Federation of Independent Business said its monthly small business optimism index grew for the third straight month, rising 0.3 points to 89.1 in October.
The Federal Reserve faces the biggest blows to its authority and independence in five decades under legislation championed by its lead overseer in the U.S. Senate, Dodd of CT.

Today, Nov 11is Veterans Day and

Thursday, Nov 12:
Unemployment Claims for last week
FED reveals monthly budget deficit

Friday, Nov. 13:
U.S. Trade Gap, import prices expected to rise.
Consumer Sentiment expected to improve

Market forces November 11
The market rally is under way but if a new high is not established at least 2 % higher than the last one we expect a few months of declines will follow. The new high must be higher because transaction volume is lower on advances than on declines indicating a weakness in this rally. We are prepared to diversify out of stocks or into fixed rates as this market rallies. We surmise the time has come to lighten up on equities by taking profits and heading towards the sidelines. But we wait for investments to approach their resistance levels first.

Asian markets were higher last night; China down -0.1%, Hong Kong up 1.6%, India up 2.5%, Japan flat at 0%, Seoul up 0.8%and Taiwan up 1%.

Two manufacturing reports out of Japan and China gave European markets and U.S. futures markets a lift this morning even though markets in China and Japan showed little enthusiasm. European markets are up with the average in a range from 1.2% to 1.3% this morning about half way through their day.

US pre-market futures are up 0.6% today at 7:00 AM EST with the DOW above 10,200 again. However traders make the advance tenuous.

This new market is treacherous for weak stocks that had advanced sharply with previous optimism. Now those weak stocks often drop very sharply if they do not predict improve earnings. It is important to get out of weak stocks quickly and possibly all stocks within a week or two when this rally should be topping out.

While the DOW is at a 13-month high but the broader American NYSE, S&P, and the NASDAQ have not yet reached their highs and are going sideways. Our indicators say we are likely near the top of the USA market for 2009 and perhaps the next six months. That is to say that although the averages may not show it, our cash flow index indicates that cash has been leaving the market for almost two months and that puts a spin on things. For instance, even if we slightly exceed the markets previous high of the last month it will still be a head and shoulders sell formation for us. The market now has to surpass the previous high by about 2% (at this time and still increasing) to maintain a bull market. For that reason we will be prepared to go into cash gradually now by just taking profits and not re-investing in the market over the next three weeks and by then we will know if this rally still has legs. The markets in China have stalled and have been moving sideways since August. A sideways volatile USA market also occurred under similar conditions during the 1970s. Either the sidelines or active trading appear to be the equities market options at this time. Many have also begun trading highly risky options.