Obama is a failure again after throwing $50Billion down the socialized GM auto union hole. The Left's attention span is less than ten minutes.

World Outlook

Obama's first choice for General Motors CEO, Fritz Henderson, was thrown out after just 8 months by the socialist left's carefully selected Obama board. This is symptomatic of the incompetent lunatic leftists who can't hold a thought for more than ten minutes. Most Americans are boycotting Obama's socialized industries because it is pure government corruption to take money from productive taxpayers to fund corrupt unions that then in turn fund and actively campaign for incompetent socialist candidates so that the leftists can steal more from productive Americans and redistribute the wealth to indigent, lazy people who only vote for more corrupt, and incompetent socialists. That is how socialists steal liberty by creating a political majority of corrupt, incompetent, and lazy people. When socialist East Germany fell the world discovered that even in a formerly highly industrious free society the work ethic degenerated under socialism and the people would "pretend to work while the government pretended to pay them". Under socialism there is plenty of worthless money for party members but shortages of food and other things to buy. Productive people are heavily taxed, regarded with suspicion, and discriminated against just as Obama already is demonstrating.

Obama who has even less knowledge of military affairs than he does of banking and Wall Street... made it clear last night that he plans to lose the battle in Afghanistan by ignoring the advice of his generals. Thankfully, national socialist Adolf Hitler, a former corporal in his army ignored the advice of experienced German generals and fortunately overextended German forces and then blamed the generals for failure and abandoned the soldiers on the fields during WWII. Unfortunately our new socialists act the same way.

Market Outlook:
The market is topping again but the NYSE (adjusted for volume levels) is still 1.54% below the required sustainable cyclical bull market's head level and thus is still a declining shoulder. The markets that represent a flight to safety are the last to indicate a market top but first to indicate a bottom. This time we are looking for the top not the bottom. Why, because the healthiest economies hit their highs already and are moving laterally.

This week:
The U.S. economy ended November on a 15 month high as the Chicago purchasing managers index unexpectedly rose to 56.1 from 54.2 in October, the Institute for Supply Management-Chicago announced Monday. Readings above 50 indicate an expansion. High-end housing prices and sales have now bottomed but low-end housing is still fraught with foreclosures.
Dec. 1:
The US manufacturing sector expanded for a fourth month running in November but at a slower pace than expected, a private survey showed Tuesday. The Institute for Supply Management said its manufacturing index fell to 53.6 percent from 55.7 percent in October contradicting the more positive results yesterday in Obama's home city of Chicago which Obama showers with American taxpayer money.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September that is at the highest level since March 2006 when it was 115.2.
US construction spending surprisingly remained unchanged in October after September's drastically revised decline of 1.6%, the largest decline since January.

Potential market movers.
Wednesday, Dec. 2:
Challenger Layoff Report
ADP Jobs Report
Fed's Beige Book minutes of the last meeting

Thursday, Dec. 3:
Unemployment Claims
Productivity
ISM non-Manufacture Index

Friday, Dec. 4:
Labor Dept. Jobs Report.
Factory Orders


Market forces December 1
We estimate the NYSE must now rise 1.5% from yesterday'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 appear to have entered into a limited price range period and America may soon do the same.
Asian markets rose over night; China up 1.1%, Hong Kong up 0.8%, India down 0.2%, Japan up 0.4%, Seoul up 1.4% and Taiwan up 0.4%.

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

US pre-market futures are down about -0.1% today at 8:00 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 1.54% above yesterday's closing price and on above average volume. The DOW set a new high but the DOW is where stock money goes when the market is shaky. That disparity itself is a concern. The NYSE also set a new high but on low market volume. When market volume is considered the NYSE is still below its high for this year.