The Obama socialists were thrown out in Virginia and New Jersey. This is good news for American liberty and for the world's economy.

For a week the news has been quite good but the bears held control as the market bottom was psychologically tested but has held.

The democrat-socialist party was unceremoniously thrown out of office in Virginia and New Jersey. Mayor Bloomberg won again in NYC. In upstate NY the republican socialist candidate abdicated her party and threw her support to the democrat socialist who then just managed to defeat a camera shy conservative new-by.

Ford showed American free enterprise could still turn a profit… almost $1 billion in fact last quarter while the nationalized GM and Chrysler are rotting on the vine. GM could not even sell its loser, Opel model.

The Institute for Supply Management reported on manufacturing activity 55.7% up from 52.6% last month.
Warren Buffett just bought a large railroad for $23 Billion indicating his confidence in the American economy.
September factory orders up.
Kraft posted wider profit margins exceeding forecasts.
Time Warner profits exceeded forecast and gave an optimistic guidance.
Hartford Financial Services Group reported quarter losses declined 90% showing insurance companies are recovering too. Health insurer Humana reported higher profits and optimistic guidance.

Today Nov 4
Officials today conclude their meeting of the central bank's Federal Open Market Committee, which sets interest-rate policy, on Tuesday and Wednesday. The FOMC is not expected to move interest rates at this time.
Cisco is expected to post lower profit and sales but also affirm the anticipated comeback in corporate demand for high-tech products and services. Allstate's report today is expected to swing to a profit. Prudential Financial results are expected to increase from a year earlier.
Jobs report AM
ISM index AM
FOMC PM

Thursday Nov 5 AM
Major retailers who will report same-store sales for October may benefit from the recovering economy as well as from cool weather that sparks sales of fall and winter clothing.
Unemployment claims AM
The government will release data on third-quarter productivity AM
Health insurers Cigna Corp. will report.

Friday, Nov 6 AM
Investors will wait anxiously all week for a labor report to be released 8:30am Friday that will likely show U.S. unemployment topped 10% during October.


Market forces November 4

We expect the market to bounce soon. Profit taking continues to be advisable on the next advance and purchases should have been made on this bottom. This present bottom was a little deeper and we appear to be entering a slower growth phase. The market appreciation rate earlier this year could not be sustained. The new rate possibly will allow the bull market to last a little longer. We expect the market to rally soon but if a new high is not established we expect a few months of declines. In fact we would be prepared to diversify more as the market rallies.

Asian markets were mixed last night; China up 0.5%, Hong Kong up 1.8%, India up 3.3% again, Japan up -0.4%again, Taiwan up 2%, and Seoul up 1.9%.

European markets are up with the average in a range from 0.7% to 1.8% this morning about half way through their day.

US pre-market futures are up 0.6% today at 7:00 AM EST with perhaps a profit taking opportunity as the next monthly rally starts.

At the start of a rally, often buying in some stocks will vastly exceed selling resulting in a price spike. If you are lucky to have one of those spiking stocks you need to take advantage of it on the day it happens. By the next day the opportunity is lost.