Obama Socialists are being paid to obstruct Obama leftists. Obama sends the stimulus money to unions.

Senator Bayh to retire with purported $13 Million in Wall Street contributions. Wall Street is now buying off the key congressional leadership including soon to retire Dodd and the Senate Banking Committee. Obama has not talked lately about creating a domestic military force similar to Iran's guard that puts down riots and murders dissidents. The US Congress is now overflowing with corrupt sycophants stealing from the American people for their own interests.

Bailing out Greece is a moral hazard unless Greece is required to pay back the loans with interest. It is effectively a bailout of overpaid union labor and indigent government pseudo-workers who use their body heat to help keep room temperatures higher in winter and who are frequently absent in the summer to help reduce air conditioning costs. I had a high school friend who became a NY State employee in Albany. He explained to me how they handled NY State citizen problems. He said he put the problem letter in a drawer for two months in case it was traced to him. That never happened because they were so disorganized so he always threw out the letters after two months. He was the most efficient worker in the office and had high ratings because he socialized with other state employees all day to keep morale high.

World Outlook

Taliban retreat as US forces drive them out of southern Afghanistan where they have little cover to retreat to. The American drive hit before weather improved to facilitate the escape of the Taliban. The initial forces are there to remove the Taliban.

European Union officials apparently have known that Greece used derivatives to conceal its growing budget deficit. Company bond sales are declining over concern that the inability of European governments to trim their budget deficits will threaten a global recovery.

The shock of China tightening credit is nothing compared to what the US will feel when the FED tightens. China was down slightly but Asian markets advanced over night. The value of mining mergers and acquisitions may more than double this year, snapping a two-year decline, as China seeks to secure supplies of raw materials

Week of Market Reports:

Tuesday, Feb. 16:
NY State Manufacturing Index 8:30 AM
Housing Market Index 1 PM

Wednesday, Feb. 17:
New Housing starts 8:30 AM
Industrial Prod. 9:15 AM
FOMC minutes 2 PM

Thursday, Feb. 18:
Unemployment claims 8:30 AM
Producer Price Index 8:30 AM
Leading Economic Index 10 AM

Friday, Feb. 19:
Consumer Price Index 8:30 AM


Market forces Feb 16, 2010
When the market rises close to the next high (in 2 to 4 months) it will likely be critical time to take profits because FED tightening will likely be occurring soon after. After the next high point the subsequent decline will likely break the old October 30 lows and challenge even the July 2009 low.

Our corrected NYSE cash flow index 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 formation and it plunged about 3% below. But that signal has a long lead time which allows us to know hat is likely two or three months in advance.

Asian markets were up over night; Shanghai up 1.1%, Hong Kong down 0.1%, India up 1.2%, and Japan up 0.2%.

European markets are up in the range from 0.1% to +0.7% this morning about half way through their day.

Today US pre-market futures are up about 0.3% at 7:30 AM EST.