Rahm Emanuel called Obama's left wing extremists f---ing retards.

Rahm got agitated last week when he was told that Obama's left wing extremist supporters were eager to attack the democrat-socialists who had become reluctant to continue to push Soviet Union style national health care through Congress.

Meanwhile Iran tested another potential A-bomb missile delivery system and President Obama said blah, blah, blah, blah, blah, blah (all with teleprompters of course). America still is recognized throughout the world as the leader in the field of medicine. But Rahm knows Obama's left wing extremists don't know that because they don't read, they are "brown shirts" that like to intimidate people but have to be told what to do. As a gay Jewish person, Rahm has little tolerance for what he calls the f---ing retards that would like to break some windows in Congress. He knows what the brown shirts did in Germany on "crystalnacht."

We think that while Rahm may have correctly assessed the intelligence of Obama's supporters he should watch what he says and he may be on his way out soon.

See Rahm's other quotes at:
http://www.brainyquote.com/quotes/quotes/r/rahmemanue409199.html


World Outlook
Obama's hero, Venezuelan President Hugo Chavez, declared a national “emergency” as the country’s water supply for hydroelectric dams dries up. In general, the socialists and communists are the dumbest and least educated who often quit school early. There has never been a brilliant socialist leader although some people confuse insanity and recklessness with intelligence. Hitler, Stalin, and Chavez were already known to be quite dull, bigoted, and paranoid when they rose to power. But Obama, all the same, chose to pose with Chavez and denounce America. We know the character of people from the choices they make.

Markets successfully tested their resistance areas and rebounded again yesterday. Selling dried up as the volume of trades dropped over 30% Monday. But the October 30lows held again. Now the MSNBC/GE/Pravda can make an about face and say the market is strong again instead of panicing people. We expect the market top for this year is less than four months away. But be wary. The next decline could bring us close to July 2009 lows. That is still too far off to predict. But if the FED begins to tighten at the end of the year the market will likely fall 6 months earlier.


Coming Week of Market Reports:
We expect more evidence this week that the economic lows are now behind us.
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 9, 2010
The DOW still is 2.0% above its previous 2-4 month cycle low that occurred October 30. The S&P 500 is still 2.9% above its previous low which occurred October 30.The NASDAQ is still 4.4% above its previous low which occurred October 30. The average investor does not know that on a market cash flow basis the market is already technically broken even if the market indices stay above the October 30 low. When the market rises close to the next high (in 2 to 4 months) they will not know it is time to take profits. After the next high point the subsequent decline will likely break the old October 30 lows and challenge even the July 2009 lows. That would occur with FED tightening and rising interest rates.

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 formation and it plunged about 3% below. Non of the lying raw DOW, S&P, or NASDAQ indices broke through their October lows. We expect a rally to begin soon to lift the averages back close to previous highs. That will again mislead most investors into thinking that the selling pressure is over.
After the probable highs 2 to 4 months from now when we must take our profits we might expect a deeper decline where all the US indices give a head-and-shoulders sell signal and Wall Street pronounces that their charts as technically broken. That will likely be an even better buying opportunity than we have at present. After that we would expect a lateral trading range through November. However the socialists may still wreak havoc and turn this recession into a depression before the voters can throw them all out.

Asian markets were up over night; Shanghai up 0.5%, Hong Kong up 1.2%, India up 0.7, and Japan down -0.2%.

European markets are flat but with a smaller variance in the range from -0.2% to +0.4% this morning about half way through their day.

Monday, US markets successfully re-tested their lows. Today US pre-market futures are up about 0.4% at 7 AM EST.