Obama plans to hurt American Businesses that already pay the highest corporate taxes in the world.

Obama's Budget Proposes $1.9 Trillion Tax Increase over the next decade and wants to take in an additional $400 billion from businesses as they propose a crackdown on international business outsourcing and higher taxes on American international companies. Bank of America Corp., GE, UTX, Exxon Mobil Corp. and Microsoft Corp. would be among the companies paying $400 billion in additional taxes under President Barack Obama’s $3.8 trillion budget.

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 RevisedFrom
Feb 1 8:30 AM Personal Income Dec 0.4% 0.2% 0.3% 0.5% 0.4%
Feb 1 8:30 AM Personal Spending Dec 0.2% 0.0% 0.3% 0.7% 0.5%
Feb 1 10:00 AM Constr Spend Dec -1.2% -0.5% -0.5% -0.6%- -0.6%
Feb 1 10:00 AM ISM Index Jan 58.4 56.1 55.5 55.9
Feb 2 10:00 AM Pend Hm Sales Dec -3.2% 1.1% -16.0%
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 2, 2010

We remain 65% 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 (not corrected for trading volume) still has 3.8% to fall to the neckline and the raw NASDAQ has 6% yet that it could fall without giving a sell signal. For that reason we expect the market will decline up to another 3% to 6% (the raw measured neckline) 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. Obama thinks giving taxpayer money to ACORN and other indigents that have no job skills puts more money into circulation… Duhhh? Needless to say… only 8% of Obama's staff ever held an honest private industry job.

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 mixed over night; Shanghai down -0.2% to another 4 month low, Hong Kong up 0.1%, India down -1.2%, Taiwan down -1,3%, and Japan up 1.6%.

European markets are up with the average in a range from 0.4% to 0.8% this morning about half way through their day.

US pre-market futures are up again about 0.3% today at 7 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.