Market topping gets analysts looking for a reason that they can shoot down later

Rather than accept that the reality that the FED caused another bubble of irrationality which inflated the US market up about 60% from their lows for the year, the analysts are looking for something to blame for the market top that will be easy to shoot down in a few months when the bubble resumes. The democrat-socialists in power are already planning another stimulus package to expand their voter base and corruption with another welfare package for the socialists. The last stimulus did nothing to create jobs, and it is the FED's zero interest rates that are causing the equities bubble and a bonus welfare package for the rich. The only ones left out in the cold as usual are the middle class workers that are still struggling to pay off the last bubble.

World Outlook
Barrons had a good article this last weekend that pointed out that FDR, Ike, and Reagan each had more than 50% of their appointees with private sector experience. The socialist Obama administration has a national record low of only 8% who actually have worked in the American free market system. The rest are for the most part hacks who work for politicians and political organizations that lobby for welfare causes. And most of the 8% who actualy have real work experience are holdovers from the Bush administration. Obama does not even know many Americans who have had to work for a living and are not live on political handouts.

JFK and Reagan cut taxes to ward off recessions because they knew that it was not smart government policy to take money from smart taxpayers to give it to ignorant and stupid people who could care less about America. Charity is one thing but the current administration's socialistic stupidity is quite a different thing. Obama thinks American security is for the most part a waste of money. Obama would like to abandon the current military and just have a small Revolutionary Guard to protect himself. He at one time mentioned forming such a guard from a government work program simolar to the Peace Corp.

Market Outlook:
U.S. stock futures dropped as falling commodity prices caused concern that the nine-month rally in equities has outpaced prospects for economic growth. Crude prices dropped to $75 a barrel, reacting to the dollar hitting a five-week high. Forecasts for fast U.S. earnings growth are failing to convince options traders that the Standard & Poor’s 500 Index will further expand its biggest bubble since the 1930s.

The NYSE is now 2% below the required sustainable cyclical bull market's head level and thus is still a declining shoulder. It is not looking good for a continuation of the current market bubble. The $800Billion union/welfare stimulation package has been spent but when one gives cash to featherbeders, shirkers, socialist comrades, and lazy people one does not create jobs. Obama, the community activist, would like us to believe he did not know that one only buys votes his way. Americans are increasingly unhappy with Obama's socialism.

This week:
Monday, Dec. 7:
Bernanke speech
NY Dudley speech
Obama joins the climate fraud socialists in Copenhagen

Tuesday, Dec. 8:
Business roundtable issues
Chain Store Sales

Thursday, Dec. 10:
Weekly unemploy Claims
US Trade Deficit

Friday, Dec. 11
Nov Retail Sales
UM consum sentiment



Market forces December 7
We estimate the NYSE must still rise 2% from Friday's close to be interpreted as a continuing rally not a declining head and shoulder sell signal. That reflects both the price change and volume of shares being traded. The market already looks like it is topping out. In any event after a possible Santa-Claus rally a normal -3% to -5% downward correction would be due anyway… so it is still wise to take profits were possible. If the head and shoulders sell signal occurs the correction could be closer to -10% to -15%.

Asian markets were mixed over night; China up 0.5%, Hong Kong down -0.8%, India down -0.7%, Japan up 1.5%, Seoul up 0.5% and Taiwan up 1.6%.

European markets are ambiguous with the average in a range from -0.5% to +0.8% this morning about half way through their day.

US pre-market futures are down about -0.3% today at 8:30 AM EST.

It is important to be able to take stock profits before January if the broader market of the NYSE does not set a new high at least 2% above Friday's closing price and on above average volume. Continuation with the current market bubble looks like it now will be a bumpy lateral ride.