President Barack Obama proposes a $3.8 trillion annual spending program today that gives trillions to stimulate welfare, government job expansion, community activism, illegal voter registration and funding for union pensions and health care. That is all his administration can do because that is all they know. Most in his administration have never had an honest job in private industry and think that the profit motive is something evil.
World Outlook
US stocks logged their worst month since February of 2009 as investors shrugged off some mixed economic data and technology stocks took another hit.
Coming Week of Market Reports:
Date Time (ET) Statistic When Actual Forecast MktExpects Last
Feb 1 8:30 AM Personal Income Dec - 0.2% 0.3% 0.4%
Feb 1 8:30 AM Personal Spending Dec 0.0% 0.3% 0.5%
Feb 1 10:00 AM Constr Spend Dec -0.5% -0.5% -0.6%-
Feb 1 10:00 AM ISM Index Jan 56.1 55.2 55.9
Feb 2 10:00 AM Pend Hm Sales Dec -3.2% 1.1% -16.0%
Feb 2 2:00 PM Auto Sales Jan 4.14M
Feb 2 2:00 PM Truck Sales Jan - 4.49M
Feb 3 7:30 AM Challeng Job Cuts Jan 72.9%
Feb 3 8:15 AM ADP Employ Cng Jan -60K -40K -84K
Feb 3 10:00 AM ISM Services Jan 51.2 50.9 50.1
Feb 3 10:30 AM Crude Inventories 1/29 -3.89M
Feb 4 8:30 AM Initial Claims 01/30 460K 454K 470K
Feb 4 8:30 AM Continuing Claims 01/30 4550K 4600K 4602K
Feb 4 8:30 AM Productivity-Prel Q4 6.2% 6.0% 8.1%
Feb 4 8:30 AM Unit Labor Costs -Q4 -2.0% -2.5% -2.5%
Feb 4 10:00 AM Factory Orders Dec 0.1% 0.6% 1.1%
Feb 5 8:30 AM Nonfarm Payrolls Jan -40K 13K -85K
Feb 5 8:30 AM Unemploy Rate Jan 10.1% 10.0% 10.0%
Feb 5 8:30 AM Avg Workweek Jan 33.2 33.2 33.2
Feb 5 8:30 AM Hourly Earnings Jan 0.2% 0.2% 0.2%
Feb 5 3:00 PM Consumer Credit Dec -$12.3B -$9.5B -$17.5B
Market forces Feb 1, 2010
We remain 70% out of the market but are setting price targets for buying. The NYSE (corrected for trading volume) broke through the neckline of a head and shoulders sell signal. The raw NYSE index (not corrected for trading volume) still has 3% to fall to the neckline and the raw NASDAQ has 5% yet that it could fall without giving a sell signal. For that reason we expect the market will decline another 3% to 5% (the raw measured necklines) and then rally close to previous highs and thus mislead most investors into thinking that the selling is over. Then we expect a final decline followed by a lateral market movement and a net decline through November elections.
The longer Obama continues stimulating his non-productive voter base rather than giving tax relief to productive Americans the longer the depression can last. The longer the FED waits to take action to slow inflation the more difficult it will be to control and the longer and more severe the FED contraction will ultimately be.
All US stocks dependent on China will likely be much more adversely affected by China's cooling off period than China itself will be effected.
Asian markets were down over night; Shanghai down -1.6% to a 4 month low, Hong Kong up 1.2%, India up 0.1%, and Japan down -0.1%.
European markets are up slightly with the average in a range from -0.1% to +0.2% this morning about half way through their day.
US pre-market futures are up again about 0.3% today at 6:30 AM EST.
American morning futures and European markets are not reliable predictors when market volume is so low. But they do tell which way speculators are leaning.
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