America is now headed toward greater equality of poverty under the democrat socialists.
World Outlook
Germany is the only nation in Europe able to exert some self-control when it comes to the big unions. Most union people in Greece on the other hand have no pride in their work. That may reflect the fact that Germany has a two track educational system that trains people well in trade skills that results in Germany having competent workers who have pride in workmanship and too much dignity to try to bankrupt their country with socialist demands for something for nothing.
This Week of Market Reports:
Monday, March 22
Treasury bill auctions.
Tuesday, March 23
Exist. Home Sales
Wednesday, March 24
Durable Goods Orders
New Home Sales
Thursday, March 25
Unemployment Claims
Consumer Price Index
Friday, March 26
Q4 GDP revision
Consumer Sentiment
Market Outlook March 22
As we said we have been selling heavily into the last week of this rally that we originally said had a maximum potential of about three months. This is the most probable level we expected it would reach (slightly above the previous peak) although there was an outside chance of going another 2.6% higher without issuing a new buy signal. The reason for that analysis was our market level had to be corrected for the shift towards higher volume during selling that had made the current market cash flow peak about 2.6% lower than last years' peak. Therefore a head-and-shoulders sell signal would be confirmed (on a corrected basis) as happened in late 2007 when the stock market cash flow peaked for that cycle before November.
This sell signal will be confirmed after the next sell-off and the next rally clearly demonstrate to everyone that a bear market is in place.
Obama and the democrat-socialists are ignoring true Americans and are setting the stage for short sellers of every breed to sweep in now and attack American markets and currencies. Sadly, last weeks stock market high will likely be the high for this year because the lunatic left will still be in power even if swept out by the end of January 2010.
Our Market Cash Flow index had already predicted this current high would likely be the last but it could have continued another month or two. However with Obamacare being forced on America yesterday, America is now very vulnerable to socialist parasites like George Soros who thrive on the decay of economies by betting against their currencies. George Soros funds socialists who then destabilize the nations they rule so Soros can go into and attack their markets.
The US dollar can now come under full attack. The attack will gradually raise the cost of financing American debt. Today it only cost 0.4% interest and the total cost of American debt is just over 5% of the American GDP. When treasuries have to pay 4% interest (ten times the current 0.4%) our current national debt could cost Americans over 50% of the GDP per year. The alternative to selling treasuries is to print money to inflate the money supply. That raises interest rates even faster. Inflation will destroy the bond market. As you can see America will fall from AAA to BB very rapidly and the currency could easily lose half its value at the peak of George Soros' attack. Then Obama will have the excuse he needs to levy 50% to 90% taxes on the working minority and America could transition towards 100% government jobs as is the case under Communism. Then Obama will be very happy and George Soros will be very rich.
Then Americans will know why George Soros spent so much money buying the Democrat-socialists their complete sweep into power. George Soros always said he wanted to destroy our American free enterprise system. National socialist Hitler gave Lenin free protected passage by train across Germany because Hitler knew Lenin would destroy his enemy's economy. When world parasites like Soros fund politicians it is only because they know the politicians will destroy their local economies. Parasites are not symbiotic they often kill their hosts.
With regard to Parabolic SAR, Re-Spiral, and MACD analysis, none of them has confirmed a bear market yet. Even our market cash flow analysis will require a selloff and then a failed rally to be 99% sure… but that would likely be three months too late. At this point the market cash flow analysis is usually about 90% correct and the potential downside selloff risk seems very high.
World Markets
Asian markets were down over night; Shanghai up 0.2%, Hong Kong down -2.1%, India down -1%, and Japan closed.
European markets are currently down in the range from -0.8% to -1 % this morning about half way through their day.
Today US pre-market futures are down in a range -1% to -1.1% at 8:00 AM EST.
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