Obama said his administration monitored and approved all the BP changes that created the environmental disaster.

Obama said his administration monitored and approved all the BP changes that created the environmental disaster.

The highest-ranking crew member to perish aboard the deepwater Horizon drilling rig warned his family that BP Plc was pressuring him to sacrifice safety for the sake of time and money, his father said. With its reputation destroyed and legal problems mounting, BP has little future. The American people did not believe trial balloons Obama put out such as blaming Bush for this environmental disaster. Finally he said he was responsible and that his federal government environmental administrator of the BP drilling quit her job. He admitted his administration was in charge and has approved every irresponsible decision BP made. That makes Obama responsible for the biggest environmental disaster in the history of the USA. And he will make BP pay for it.

The US stock market was sharply higher… lifted by China's denial that it was mulling sales of holdings in European bonds as GE/MSNBC/Pravda had falsely speculated the day before. After all the major indices bounced off of the lows for a second day stocks surged upward. It was the second best day of this year. It put the week into positive territory with the S&P rising 3% yesterday. Volatility (the fear index) dropped sharply.

GE/MSNBC/Pravda gives the appearance that it is collaborating with the hedge funds and George Soros that fund Obama leftist insiders who manipulate the market to create high volatility but low risk for corrupt insiders.

GE/MSNBC/Pravda provided false positive rumors that give insiders opportunity to dump stocks high last month, and then in the last three weeks they reported extremely irresponsible negative rumors as if they were true news to create the impression Europe was about to collapse. Is this corrupt reporting of news a special service GE/MSNBC/Pravda provides their advertisers and their friends like George Soros? How can one explain Jim Cramer yesterday telling listeners to continue selling at this "high" when the market is obviously at its low and investors should not be selling at the low? Is Jim incompetent, irresponsible, or is he corrupt?

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

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

The same is true for the Power Shares, QQQQ
http://finance.yahoo.com/echarts?s=QQQQ

The same is true for the Dow Jones Industrials, DJI
http://finance.yahoo.com/echarts?s=%5EDJI
Feb 8 9908 May 26 9974

Plot the NASDAQ and you see the resistance level of the previous low on Feb 8, 2010 has not been broken.
http://finance.yahoo.com/echarts?s=%5EIXIC+Interactive#chart2:symbol=^ixic;range=1y;indicator=bollinger+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off


World Markets:

Developing-nation stocks rose, sending the MSCI Emerging Markets Index to its biggest three-day gain in a year, as concerns over Europe’s debt crisis eased and companies reported a stronger profit outlook.

The Baltic Dry Index is showing resurgence in world trade. Demand for commodities is finally rising again just in time to cancel a double dip recession.
http://www.bloomberg.com/apps/cbuilder?ticker1=BDIY%3AIND

We believe for now the market decline is 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
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.

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.

The economic news since last week has been good but GE/MSNBC/Pravda knuckleheads have been political and spun the news highly negative to take the Obama disaster out of the spotlight.

The Case-Shiller 20-city Index for Mar home prices leaped 2.4% after increasing 0.7% the month before.
Consumer Confidence for May rose to 63.3 from 57.7 the month before.
The FHFA (stressed) Housing Price Index Mar rose 0.3% showing that housing prices are increasing and more homeowners are getting their heads above water.

New Home Sales Apr: Revisions to the data make the data look worse. They revised last months New Homes Sales upward by 28,000. New Home Sales would have been up 92,000 from last month but by quietly raising the March figure the increase is only $64,000. But if they increased March by borrowing from April the increase could actually be 120,000 for the total new home sales of 536,000. If these adjustments to the data are intended to deceive as evidenced by their systematic rather than random application then the Obama government is intentionally destabilizing the markets. That is very irresponsible of the Obama administration or stupid. It is though Obama is actively trying to create a great depression with one disaster after another.

Durable Orders Apr: rose a spectacular 2.9%. Again the data for last month was quietly improved (by 1.2%) after it was announced such that this months gain was minimized.
Durable Orders ex Transportation Apr were also manipulated downward by correcting last month's figures upward by 1.3%.

Crude Inventories 05/22 were reported at 2.46M, again a pessimistically large change with last weeks number reported erroneously low (off by a decimal place). This is perhaps an unintentional reporting error since it is so large.

Yesterday

Initial claims 05/22; Weekly jobless claims dropped by 14,000 to 460,000

Continuing Claims 05/22; declined 1% from a corrected 4656K to 4607K

GDP - Second Estimate Q1, The U.S. economy grew briskly in the first quarter, but its pace was a little weaker than originally thought, according to the government, which revised consumer and business spending lower. Gross domestic product increased by a 3.0% annual rate January through March, the Commerce Department said Thursday. In the government's original report on first quarter GDP a month ago, it estimated an increase of 3.2%.

The data also showed corporate profits picking up. After-tax earnings climbed 9.7%, better than 8.2% during the fourth quarter. Year-over-year, profits were 42.7% higher, as the economy recovers from its deep recession and unemployment remains elevated.

The GDP Deflator - Second Estimate Q1 increased 1% which is an estimate of the current inflation rate.

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 28, 2010
The market experienced a strong bounce off of the Feb 8 lows creating the neckline for a likely head-and-shoulders formation for the raw price indices. It looks like smooth sailing for at least 6weeks.

World Markets

Asian markets were up despite tension with N. Korea. Shanghai unchanged, Hong Kong up 1.7%, India up 1.2%, and Japan up 1.3%.

Today the European markets are up in the range from 0.4% to 0.6% this morning about half way through their day.

US pre-market futures are up before the start by about 0.2%. U.S. Futures are a snapshot of the moment and do not correlate with what happens by the end of the day.