1) Wall Street nonsense attributes last week's stock decline to a country smaller in population or wealth than LA County in California. It cited Greece as the threat of runaway inflation caused by high national debt.
2) Wall Street nonsense told investors to stay away on Friday when the buying opportunity was greatest.
3) Wall Street nonsense #3 contradicts nonsense #1 with Wall Street saying gold prices have peaked just when gold is a buying opportunity. Inflation is expected to rise slowly until the second half of this year.
The best values generally come about six months before the prices move up
World Outlook
Markets stabilized throughout the world as we indicated was highly probable. Heavy hedge fund selling apparently succeeded last Friday to panic investors, smaller funds, and banks and the market closing averages ended above the October 30, 2009 lows as we predicted. Now the MSNBC/GE/Pravda can make an about face and pretend the market is strong again. We expect the market top for this year is less than three months away. But be wary. The next decline could bring us close to July 2009 lows. That is still too far off to predict.
Coming Week of Market Reports:
Date Time (ET) Statistic For Actual Forecast Expect Prior Revised From
Feb 9 10:00 AM Wholesl Inven Dec - - 0.3% 0.5% 1.5% -
Feb 10 8:30 AM Trade Balance Dec - - $32.0B -$35.5B -$36.4B -
Feb 10 10:30 AM Crude Invent 2/5 - NA NA 2.32M -
Feb 10 2:00 PM Treas Budg Jan - -$46.0B -$50.0B -$91.9B -
Feb 11 8:30 AM Contin Claims 02/06 - NA NA NA -
Feb 11 8:30 AM Initial Claims 02/06 - 475k 465k 480k -
Feb 11 8:30 AM Retail Sales Jan - NA NA NA -
Feb 11 8:30 AM Contin Claims 1/30 - 4550k 4590k 4602k -
Feb 11 8:30 AM Retail Sales Jan - - 0.1% 0.5% -0.3% -
Feb 11 8:30 AM Retal Sal ex-auto Jan - -0.3% 0.5% -0.2% -
Feb 11 10:00 AM Busins Inven Dec - -0.2% 0.3% 0.4% -
Feb 12 9:55 AM Mich Sentiment Feb - 75.0 75.0 74.4 -
Market forces Feb 8, 2010
Canada's real estate prices have already recovered and are up 40% from their lows. But US Commercial real estate failures seem to be about ready to surge. Will a US real estate recovery come quick enough to save commercial RE? We think that is quite possible and that at this moment residential Real Estate and an inflation hedge such as precious metals are bargains. Diamonds can no longer be trusted with corrupt, ignorant, and murderous African Moslems preying on the world. It is said that the average American receives one scam email each day with the majority originating in Moslem Nigeria where they like to burn Christian churches when they are full of people. It is difficult to get all the Nigerian garbage filtered as Spam.
We had an interim report Saturday Feb 6. Friday the market behaved pretty much as we expected. The DOW fell from1002.18 down to 9835.09 and we personally went to 85% invested. Then the DOW rose to close 10.05 points higher than the start; 10012.23.
Our corrected NYSE cash flow index already gave its Head & Shoulder neck breakdown sell signal on Jan 29 when the NYSE (corrected for trading volume) broke through the neckline of a head and shoulders sell signal and it plunged about 3% below. The lying raw NYSE (not corrected for trading volume) broke through too on Friday but advisors will not count that because the market ended higher at the close. We however see that as confirmation of our prediction that the next selling opportunity will be a high close to the last high and then a major selloff. We still expect a rally in the coming month bringing the averages close to or slightly exceeding previous highs and thus again misleading most investors into thinking that the selling pressure is over. At those levels our volume-corrected index will likely show a cascading lower high. Then we might expect a deeper decline where all the US indices give a head-and-shoulders sell signal. That will likely be a better buying opportunity than now. After that we would expect a lateral trading range with a small net decline in the averages through November elections and the US economy is drained of its $trillions in inflationary credit expansion. The socialists may still wreak havoc before the voters can throw them all out.
Asian markets were stable over night; Shanghai down -0.6%, Hong Kong down -0.1%, India up 0.1, and Japan down -1%.
European markets are flat but with a high variance with the weaker countries down major countries up and the range from -1% to +1% this morning about half way through their day. Friday US markets rebounded as expected after European markets closed.
US pre-market futures are up about 0.2% today at 8:30 AM EST.
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