Obama can't seem to make up his mind whether to fight Jihad in Moslem territory or on our own soil.

An Obama malaise is beginning to settle on the USA just as a Jimmy Carter malaise did during his single term. Jimmy Carter destroyed the American nuclear energy program and brought on the Iranian radical Islamic takeover and the Iranian hostage crisis. The lunatic left thought that Jimmy was the smartest president ever. But the lunatic left now thinks Obama is smarter. Obama's policies are making the situation far worse now and they seem geared towards the destruction of America both economically and militarily. The leftists say we must pretend the 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).

Market Outlook

This week
The Group of 20 nations agreed to maintain stimulus efforts and metals prices rallied.
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.
The tighter bank lending standards reinforce the FED's decision to keep rates low. There were many planned Federal Reserve officials' speeches Monday that have been interpreted positively.
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 Senator Dodd

Today, 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 12
Many indications are that the economic situation in China is sputtering and China is not the world economic engine that American was before Obama. Obama is failing miserably as president throwing money at his solidly indigent and lunatic left voting block, raising taxes on those who still have a work ethic, and abandoning allies to eastern socialist theocratic tyrants and anti-Christian jihadists.

Asian markets were faltering last night; China down -0.1%, Hong Kong down -1%, India down -0.9%, Japan down -0.7%, Seoul down -1.4%and Taiwan down -0.1%.

European markets are down with the average in a range from 0% to -0.2% this morning about half way through their day.

US pre-market futures are down 0.4% today at 8:00 AM EST. The broader NYSE has not set a new high yet for this rally. The rally could falter and resume in a few days. If it does not the mutual funds may start selling. The WSJ had an article today on mutual fund timing entry and exits during this recession.

This Obama malaise market is treacherous for stocks that had advanced sharply with previous optimism. Now stocks often drop very sharply. 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 lease 2% above the last high.

While the DOW is at a 13-month high the broader American NYSE, has not yet reached new highs. 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 our cash flow index indicates that cash has been leaving the market for almost two months. The NYSE 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 go into cash by just taking profits and not re-investing in the market until we 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.