Obama should get the UN to condemn the one group in the world that thinks they have a god given right to kill Christians, Jews, Hindus, Buddhists, atheists, and gays, and to murder their daughters who refuse to wear a berka.
Today Brazil, South Korea and Russia seem to be losing the battle among developing nations to reduce gains in their currencies and keep exports competitive as the demand for their financial assets, driven by the slumping dollar, is proving more than their central banks can handle. The demand for gold now will rise independent of silver and other precious metals as nations build gold reserves. We are beginning to see inflation in building materials even though the sector has hardly revived. That is because that inflation has been hidden by the worldwide building recession simply because if you do not buy you don't know how much prices rose. But inflation of building prices will help real estate get its head above water again quickly next year.
The Obama that is beginning to settle on the USA just as a Jimmy Carter malaise did during his single term. Jimmy Carter was such a disappointment always fighting the last war. He was obsessed with human rights and the belief that we would run out of oil within twenty years. He left office with the world accusing the USA of human rights violations and with shortages of everything from energy to toilet paper. The discomfort index (inflation plus unemployment was over 20% when Jimmy was voted out of office and the American Nuclear program was destroyed by Jimmies lunatic left lead by Hanoi Jane Fonda who was seen by many as a traitor from the Kennedy and Johnson's Viet Nam War. Jimmy was also responsible for the Iran hostage situation that was a disaster because it could have been prevented and he had weakened the military so much that the rescue effort failed. The lunatic fringe thought Jimmy was the brightest president we ever had. Jimmy was professionally a nuclear engineer not an uneducated community activist like Obama who did not know what a PE ratio is and thought Wall Street was just an economic indicator like the price of wheat.
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
Unemployment Claims for last week were down because people fell off the unemployment roles because congress failed to extend their benefits before they expired. The bulls and bears were deceived and all the more reason these last few weeks are a good time to take profits and put something aside for the next more volatile decline. The sideways market movement during the president Jimmy years had much larger swings.
FED revealed a $175 billion monthly budget deficit and a $1.4 trillion federal deficit approach The 12.1 Trillion-dollar debt ceiling. Obama has tripled the USA deficit in just nine months with much wasted on bonuses and political and other corruption the depths yet to be plumed.
Today, Friday Nov. 13:
U.S. Trade Gap, import prices expected to rise.
Consumer Sentiment expected to improve
Market forces November 13
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, abandoning allies to eastern socialist theocratic tyrants and anti-Christian jihad. After a small pull back there is a chance of one more spike upward to determine if we have a head and shoulders sell indication. We must use the broader market of the NYSE for this analysis not the Dow or S&P which are manipulated by funds.
Asian markets were improved last night; China up 0.5%, Hong Kong up 0.7%, India up 0.9%, Japan down -0.4%, Seoul down -0.1%and Taiwan down -0.1%.
European markets are flat with the average in a range from 0.1% to -0.4% this morning about half way through their day.
US pre-market futures are up 0.1% today at 8:00 AM EST. The broader NYSE has not set a new high yet for this rally. The rally faltered but could resume for a few days. If it does not the mutual funds may start selling.
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 1.8% above the last high. Yesterday the market decline was on extremely low volume and that is why this improved form 2%. That requires a 5.3% advance from where we closed yesterday
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.
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