George Soros and other international socialists fail whenever they attack the dollar because now it is just like trying to attack the Chinese Huan and that destroys the $US speculators. The Huan is as strong as gold and attacking the dollar lowers the Huan and effectively is like trying to force down the price of gold. If China drops supporting the dollar, gold prices and other currencies could soar. That would destroy China's exports especially to the US, China's largest customer. That is why China has not abandoned the dollar yet.
Obama lacks common sense:
Now we have some insight into why Obama said not to jump to conclusions about Nidal Hasan. This murdering Muslim Terrorist who killed and wounded the soldiers and civilians at Ft Hood, Texas was actually an advisor to Obama's Homeland Security team. Look on page 29 of the Homeland Security Institute link below. Go to document's page number 29, scroll down toward the bottom on the Left Column.
http://www.gwumc.edu/hspi/old/PTTF_ProceedingsReport_05.19.09.pdf
It is amazing that in addition to his lunatic left and former communist policy advisors Obama put a budding terrorist in as one of his homeland security advisors. Obama shows no common sense at all. That is not something one would expect from an American who loves his country unless he completely lacks any sense or good judgement.
Market Outlook:
A 1.6% surge in utilities, boosted by apparent global cooling drove production last month. Also, companies in the U.S. are slowing the liquidation of inventories and their buying now is helping manufacturers. Every time Al Gore makes a speech the temperature drops. Most scientists agree that there is global warming but it just is natural not human in origin. Now surveys show that 43% of Americans even doubt there is any global warming natural or otherwise thanks to Al Gore's negative credibility.
It sounds as though China may allow their currency to appreciate and help equalize the trade deficit with America and that would be a threat to China's exports and recovery and would begin the inflation of the prices of USA imports from China. But still the relaxed link would still protect the dollar from a major attack.
This week
This is an important week. We expect an improvement in housing markets.
NY Fed Manufacturing Survey indicates that conditions for New York manufacturers improved in November, but at a somewhat slower pace than in October.
Bernanke spoke in NYC and would like to avoid the 1994-type bond market carnage of higher interest rates. It was interpreted positive.
September Business Inventories Fell 0.4%, another positive factor for increasing production.
Home Depot sales were better than predicted
The USA markets continued to rally.
In September, the goods deficit increased $5.6 billion from August to $47.6 billion, and the services surplus was virtually unchanged at $11.1 billion. Exports of goods increased $3.5 billion to $90.3 billion, and imports of goods increased $9.1 billion to $138.0 billion. Exports of services increased $0.2 billion to $41.6 billion, and imports of services increased $0.2 billion to $30.5 billion. This shows world trade is improving.
Industrial production increased 0.1 percent in October after having averaged monthly gains of about 0.9 percent over the previous three months.
Housing has bottomed and the economy should grow at a reasonable pace next year, the president of the Federal Reserve Bank of Richmond told state legislators Tuesday. In housing, Jeffrey M. Lacker said several indicators of sales and construction activity hit low points earlier this year and have already risen modestly.
"Housing is no longer a major drag on GDP growth," he said, referring to gross domestic product, which is the sum total of goods and service produced in the country.
"In fact, it should make positive contributions, in welcome contrast to the past three years."
Today, Nov 18:
Consumer Price Index
Housing Starts
Thursday, Nov 19:
Unemployment Claims
Leading Indicators
Market forces November 18
The broader market declined yesterday but on very low volume so that is good news. We must use the broader market of the NYSE for the analysis of the same risk for American Markets. We estimate it must still rise another 1.7% from yesterday's close to be interpreted as a continuing rally not a declining shoulder. If a bear market head-and-shoulder does not occur then we may see a small correction and another new high by the end of the year. Otherwise we want to be in cash. We used yesterday to take profits and go further into cash already because either way there will likely be a correction in the next few weeks. As the market tests highs there is a rapid rotation is stocks that can create upward spikes that are opportunities to sell. We remember that even in a flat market there are monthly cycles that can provide significant price declines and then potential gains in volatile stocks.
Asian markets were mixed again last night; China up 0.6%, Hong Kong down -0.3%, India down -0.3%, Japan down -0.6%, Seoul up 1.1%and Taiwan up 0.4%.
European markets are up with the average in a range from 0.4% to 1.1% this morning about half way through their day.
US pre-market futures are flat at about -0.1% today at 8:00 AM EST. The broader NYSE was slightly lower yesterday but on very low volume. That was good. It is important to be able to get out of stocks quickly and possibly completely if the NYSE does not set a new high at least 1.7% above yesterday's closing price and on above average volume.
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