Socialists continue to persecute former Bank of America Chairman Kenneth Lewis

Socialists continue to persecute former Bank of America Chairman Kenneth Lewis because he exposed the socialist's bungled unconstitutional bank nationalization attempt.

BOA chairman Lewis was driven out by the socialists because he dared to expose that he and other bank chairmen had been coerced to sign agreements giving the FED control and because he claimed they then forced him to complete the Merrill Lynch takeover under threats of being forced out by the Obama administration. Then they forced him out of BOA by harassing BOA with frivolous federal lawsuits. Now the socialists are suing Lewis personally because he succumbed to their Treasury Department pressure and allowed the twisted lunatics of the FED to expose BOA investors to higher risk and potential losses. Attorney General Cuomo of NY is leading the persecution of former BOA chairman Lewis. Americans need to throw these leftist thugs and butt-heads out of government this year.

World Outlook

Markets dropped sharply throughout the world as we warned was highly probable. Transaction volume is a lie detector and it was telling us that the bull market since last September was a lie. This current panic is caused by heavy hedge fund selling apparently intended to panic investors, smaller funds, and banks. We expect an early selloff today but we expect the closing market averages to be above the October 30, 2009 lows.

This decline may panic China's communist leaders and they are likely to ease off soon on their commercial loan policies. In a few weeks we should see Asian stocks begin to advance again. We will then look back and see today as a selling climax. But be wary. The next decline could bring us close to July 2009 lows. That is too far off to predict.

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 1.0% -3.2% 1.1% -16.4% -16.0%
Half the small improvement in pending home sales was accomplished by revising the last report down 0.4%

Feb 3 7:30 AM Challeng Job Cuts Jan -70.9% 72.9%
Feb 3 8:15 AM ADP Employ Cng Jan -22K -60K -30K -61K -84K
Good news- Companies in the U.S. cut an estimated 22,000 jobs in January, in line with forecasts, according to data from a private report based on payrolls.

Feb 3 10:00 AM ISM Services Jan 50.5 52.1 51.0 49.8
Feb 3 10:30 AM Crude Inventories 1/29 2.32M -3.89M

The service job market improved less than expected and oil inventories have increased putting a downward pressure on commodities.

Feb 4 8:30 AM Initial Claims 01/30 480K 460K 455K 472K 470K
Feb 4 8:30 AM Continuing Claims 01/15 4602K 4550K 4581K 4600K 4602K
Feb 4 8:30 AM Productivity-Prel Q4 6.2% 6.2% 6.5% 7.2% 8.1%
Feb 4 8:30 AM Unit Labor Costs - Q4 -4.4% -2.0% -3.5% -1.5% -2.5%
Feb 4 10:00 AM Factory Orders Dec 1.0% 0.9% 0.5% 1.0% 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 5, 2010
Commercial real estate failures seem to be about ready to surge. 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. The lying raw NYSE (not corrected for trading volume) has a potential 1% to fall left before giving a sell signal for the outside world. We expect the markets to close today slightly above the previous October 30, 2009 lows so that the uncorrected stock indices will be optimistic and not give a head-and-shoulders sell signal. That low will be a buying opportunity and the uncorrected indices will still likely be over optimistic.

Panic selling got so bad yesterday that we almost got a buy signal for the market being oversold. We started buying in the last half-hour. A Market Cash Flow buy signal could be as close as today. If not, 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. That could be a few weeks away and would be the next profit taking opportunity.

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.

This is still a trading and short-term investment market. The socialists can still wreak havoc on the American economy with their short attention span and frenzied approach to destroying free enterprise and traditional American liberties.

Asian markets were down sharply over night; Shanghai down -1.9%, Hong Kong down -3.3%, India down -2.7, and Japan down -2.9%.

European markets are down sharply with the average in a range from -1.2% to -2.4% this morning about half way through their day. We do not expect US markets to rebound until after European markets close.

US pre-market futures are down about -0.1% today at 9 AM EST.