Bull market resistance levels have not been shattered by GE/MSNBC/Pravda's apparent attempts to destabilize our markets and shift blame from Obama to

Bull market resistance levels have not been shattered by GE/MSNBC/Pravda's apparent attempts to destabilize our markets and shift blame from Obama to the Greeks.

The Obama leftists at GE/MSNBC/Pravda risk de-stabilizing world economies by spreading lies and deception about the EU and Greece when Obama's wasteful spending is the world's greatest threat.

At about $250 Billion, the Greek debt is but a drop in the bucket compared with the $13Trillion debt that Obama plans to run up if he and his left-wing Congress are not removed by 2012. And yet the Obama supporting leftists at GE/MSNBC/Pravda would like to pass the blame to the Greeks.

Cutbacks of government jobs are needed now in the USA at State and federal levels. The Obama program that preserves do-nothing state, and federal jobs and other waste is crippling us. We would be much better off cutting the high paid pretend-work government jobs and have them instead collecting unemployment checks and looking for real jobs.

Most of you who know any state and federal workers know that is true. You know government pretend-workers take pride in how little they do, how much they are paid, how much more secure their job is than yours is, and how much they will get in retirement. Their unions just like the Greek unions take pride in how much they get for how little they do. Government workers are the leftist's biggest solid voting block and that is why the leftists protect their pilfering of our national treasury. Under Communism everyone has to be a government worker supporting the party or they have no job. That is the direction the Obama leftists are moving America. Americans need to stop them

In spite the GE/MSNBC/Pravda leftist's attempt to distract Americans with Greek nickel and dime scare tactics, all the major American stock market indices remain above the resistance levels set on the Feb 8 close. As long as these levels hold we in America are by definition still in a bull market.


Plot the S&P 500 and you see the resistance level of the previous low on Feb 8, 2010 has not been broken.
http://finance.yahoo.com/echarts?s=%5EGSPC#chart1:symbol=^gspc;range=6m;indicator=bollinger+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined
Feb 8 close 1056 May 24 close 1086

The same is true for the New York Stock Exchange, NYA
http://finance.yahoo.com/echarts?s=%5ENYA
Feb 8 6713 May 24 6775


The same is true for the Power Shares, QQQQ
http://finance.yahoo.com/echarts?s=QQQQ
Feb 8 42.62 May 24 46.86


The same is true for the Dow Jones Industrials, DJI
http://finance.yahoo.com/echarts?s=%5EDJI
Feb 8 9908 May 24 10066

American's should not be afraid of Greek socialists. We need to get rid of our own leftists and cut government "pretend" jobs. When the East Germans were liberated from Communism they revealed that the communist government pretended to give them real jobs and they pretended to work. In the end production was so low the stores were all empty and America had to send them food to prevent starvation.

World Markets:

Brazil’s Bovespa stock index rallied, rising sharply as real-estate companies and commodity producers climbed after the measure fell to the cheapest level in more than a year. According to Bay Crest Partners LLC, Brazilian stocks are poised to rebound after a key momentum indicator gave the strongest buy signal since the bear- market low in May 2004.

We believe for now the worst of the current market decline is just about spent. Volume spiked up in the capitulation last Thursday. It looks like we had an intermediate double bottom and it is up from here.


Economic Calendar
Last Week
Crude Inventories dropped significantly from 1.95M down to 1.62M and that should cause energy prices to continue rising. The WSJ thinks even 1.62M is a glut, but if that were true the glut is evaporating at a rate that it will be gone in six months. So it seems that even the WSJ had joined GE/OBAMA/MSNBC/Pravda on the negative side thus adding further contrarian evidence that now is the time to buy.

Payrolls increased in 38 states in April, led by Ohio, Pennsylvania and New York, indicating the recovery in the labor market is becoming more broad-based. Federal Reserve Bank of New York President William Dudley said that while the economic recovery is slower than desired he sees the start of substantial growth in employment.
This week:
The declining stock market has caused the leading indicators to turn down like a self-fulfilling prophecy.

Yesterday
10:00 AM Existing Home Sales Apr
Sales of previously owned US homes rose by 7.6% in April to a five-month high of 5.77 million, according to the industry body the National Association of Realtors. Continued extensions of the tax rebate appear to be working. This rebate was the most successful so far.


May 25
9:00 AM Case-Shiller 20-city Index Mar
10:00 AM Consumer Confidence May
10:00 AM FHFA Housing Price Index Mar

May 26
8:30 AM Durable Orders Apr
8:30 AM Durable Orders ex Transportation Apr
10:00 AM New Home Sales Apr
10:30 AM Crude Inventories 05/22

May 27
8:30 AM Continuing Claims 05/22
8:30 AM GDP - Second Estimate Q1
8:30 AM Initial Claims 05/22
8:30 AM GDP Deflator - Second Estimate Q1
8:30 AM Initial Claims 05/22
8:30 AM Continuing Claims 05/22

May 28
8:30 AM Personal Income Apr
8:30 AM Personal Spending Apr
8:30 AM PCE Prices - Core Apr
9:45 AM Chicago PMI May
9:55 AM U. Michigan Consumer Sentiment May


Market Outlook May 25, 2010
The selling pressure dried up yesterday with a 35% fall-off in trade volume.

The Greek debt is rationalization by the MSNBC/Pravda reporters to divert attention from the debts Obama is running up. The real reason for the market drop is technical and relates to profit taking since the market rose more than 70% at such a fast pace. We can see that profit taking action beginning to dry up now. The next time there is profit-taking GE/MSNBC/Pravda will probably blame on the California deficit (a Republican governor) or whatever happens to be available to MSNBC/Pravda at the time. We find rationalization is all MSNBC/Pravda and Jim Cramer can do and they spin whatever works as a possible explanation. But blaming it on a little third world corrupt unionized country is about as feeble a rationalization as we have ever seen.


IBM agrees to buy AT&T's Sterling Commerce for $1.4B. Credit is available and not shutting down as the liars at GE/MSNBC/Pravda would have us believe.

The final market capitulation last Thursday was greater than the 3-9-09 capitulation, and more comparable to 9-17-08 or 10-9-08. Capitulations are such big disturbances that they render moving averages inaccurate for several weeks.

World Markets

Asian markets were down as South Korea and Hilary squared off with N. Korea and the Euro falls last night. Shanghai down 1.9%, Hong Kong down 3.5%, India down 2.7%, and Japan down 3.1%.

European markets are down as South Korea and Hilary squared off with N. Korea and the Euro falls. Today the European markets are in the range from -2% to -3% this morning about half way through their day.

US pre-market futures are recovering this morning from lows of about -2%. U.S. Futures are a snapshot of the moment and do not correlate with what happens by the end of the day. Yesterday was spent recovering until a sell-off in the last hour.

Panic selling at market lows is unfortunately the rule rather than the exception. That is why the capitulation occurs. Once those who panic are out of the market the next leg of the advance begins.