New windfalls for politial insiders

There are some that think Obama will now flood the health care industry with stimulus funds to make it seem like socialized medicine can work. If that is true then a mini bubble with windfall profits will occur. Currently the financial sector is benefiting from a windfall return on bank taxes paid as far back as five years. Friends of politicians with inside information will make fortunes now if they acquired shares in many banks that are in bankruptcy because those banks will have $Billions in previously paid taxes distributed to the friends of the Democrat Socialists who bought stock for pennies because they knew this would happen. Of course this windfall will do nothing to help the American economy and is a moral hazard because it continues to reward the friends of the most corrupt administration in American history. Isn't socialism great where you take from the rich and put it in your own pocket? Imagine the $billions given to socialist and communists through the convoluted language of the stimulation package. How many insane revolutionaries will suddenly have taxpayer funds at their disposal? If you can't earn an honest living then just become a socialist or better yet a communist!

Wall Street worked hard to make this rally set a new high this week. But due to the low volume the high was deficient by 2.5% on a Market Cash Flow basis. That is what happens at market tops. The insiders push very hard for new highs so that most market timing strategies do not know the market id overbought. Insiders will soon begin selling knowing that the people who channel markets and stocks will buy in at the old lows and buy in 100% as the Bull market begins to break down. The bulls may even drive a technical rally off the new lows at which time the sell-off will likely resume in earnest. We say this now because now is the time to complete an orderly withdrawal from the market.

We expect the Obama-lurch towards socialism to be the start of another downward spiral that will result in a Great Depression or at best a double dip until such time as this administration can be removed. He intends to give a new 30 million-person block of people dependent on government handouts to be the critical voting mass to drive future socialism. In Russia it got so bad that they housed street people in the mansions of the wealthy. Let's hope they don't kill the wealthiest 2% as the German Nationalist Socialists and the Soviet States did. Socialists were the ones who slaughtered, enslaved and ultimately drove out the Jewish populations who initially were very active in the movements. We recommended selling into this rally and now we recommend cutting any losses and staying on the sidelines for an indefinite period of time. Bonds will soon be as poor an investment as stocks. Socialists were responsible for the "killing fields" of Cambodia. Socialists pretend they care about people until someone disagrees with them. Then they slaughter everyone who whants to achieve anything truely worthwhile, good, but not socialist. Socialists are wanna-be butchers of people.

The only way now to avoid a Great Depression or a permanent economic depression under socialism, is to throw out and repeal the work of the Obama Administration.


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:
Treasury bill auctions are feeling the pressure of China's absence at auctions. That means the treasury will need to actually inflate the US currency.

Yesterday
Existing Home Sales fell 0.7% from a year ago. That looks like a statistical blip not a trend.

Wednesday, March 24
Durable Goods Orders rose in February for a third month, while inventories and backlogs climbed by the most in more than a year indicating the economy had finished its first dip.
New Home Sales

Thursday, March 25
Unemployment Claims
Consumer Price Index

Friday, March 26
Q4 GDP revision
Consumer Sentiment


Market Outlook March 24

We are in the quiet before the storm.
As we said we have been selling heavily into this rally which shows signs of ending soon. If you look back you will see we were buying when people had sold off the market and we are selling near the peak now. Our private sell signal corrects the market price data with volume data to make the data speak the truth. So we can already see the head and shoulder sell signal is forming even though the current markets are at new highs (slightly). In fact the highs would need to be 2.5% higher for them to be higher when corrected for poorer volume on advances than on declines.

Obama and the democrat-socialists are setting the stage for short sellers of every breed to sweep in soon and attack American markets and currencies. The fact that George Soros funded the Obama campaign should have been enough for every American to vote against the Obama regime.

World Markets
Asian markets were flat over night; Shanghai up 0.1%, Hong Kong up 0.1%, India up 0.2%, and Japan up 0.4%.

European markets are currently declining in the range from 0% to -0.5 % this morning about half way through their day.

Today US pre-market futures are down in a range -0.1% to -0.2% at 8:30 AM EST.