Rush Limbaugh is acting irresponsible now by defending BP. His old audience is turning him off. Conservatives also happen to be people who love the land and the wildlife not just the economic and political freedoms of America. Some one is giving Rush bad feedback. Rush is hurting conservatives now by acting so irresponsibly supporting a criminally negligent company that killed and maimed quite a few Americans and is hurting the Gulf economy.
According to Jim Cramer, Apple must have value because it has destroyed the value of much of the telecommunication's business. So says GE/MSNBC/PRAVDA/ Jim Cramer. This entire sector that Cramer picked as the very best to be in has been going down almost from the first day Cramer said wireless telecommunications was the place to be. Jim blames it on little powerful people who wear red pajamas all day. Only Jim knows what that means. Sounds like Jim is losing it completely.
The markets seem to do the direct opposite of what GE/MSNBC/Pravda wants it to do. From that, one must surmise that now that Apple is again at it's 52 wk high this is the time to get out of Apple ASAP because the teenybopper based twitter/facebook market has no legs. The Apple notebook is like the clipboard that everyone carried forty years ago because it made them look like a doctor or an engineer. That lasted about a year because it was more of an inconvenience than a help and people kept misplacing them. Because Apple apparently markets primarily to children, adults find Apple's products difficult to use with adult fingers and eyes. Sooner or later daddy and mommy will see that junior's grades are going down because of Apple. Then daddy and mommy will no longer buy junior his apple toys.
World Markets:
Economic Calendar
Earlier this week
Export Prices ex-ag. May up only 0.6% about half of last month allowing the FED to keep interest rates low.
Import Prices ex-oil May also up only 0.5% the same as last month.
Empire Manufacturing Survey Jun: The Federal Reserve Bank of New York’s general economic index rose to 19.6, an 11th consecutive month of improvements. Readings greater than zero signal expansion in the so-called Empire State Index that covers New York, northern New Jersey and southern Connecticut.
Net long-term Treasury International Capital out-flows for April were down to 83 $Billion from 140.5$B the month before.
Yesterday
Housing Starts May were down to 593K from 659K which is a good sign because it does not make economic sense to be building houses when there is already such a glut that has caused the home prices to decline and put people underwater.
Building Permits May were down to 574K from 606k which is good for the same reason because we need home prices to rise at least 10%.
PPI May declined to -0.3% from -0.1% last month. This is deflationary pressure that will cause a collapse in the price of Gold if it continues. It means that the FED can continue to keep rates low for the time being.
Core PPI May remained at 0.2% which is very low (good) but could be dangerous if it goes negative as it has in Japan.
Capacity Utilization May increased to 74.3% from 73.7% which means there has not been a double dip in the economy to date.
Industrial Production in May increased 1.2% after increasing 0.8% last month. That means growth is accelerating. That means there is no double dip and no stagnation but rather accelerated growth and we are on an economic upswing now if this continues.
Crude Inventories 06/12 increased 1.6M the first increase in months and could show up at the pump as a decline in the price of gasoline.
Initial Claims 06/12 increased 2%… not good…but that is BP's fault but it will ramp up quickly and then stop growing.
Continuing Claims 06/5 increased 2%… not good… also BP's fault
CPI May was down -0.2% …very good
Core CPI May was up 0.1%… very good
Current Account Balance Q1 looked manipulated at $109Billion for the month… deficit is as bad as usual when Obama socialist continue to throw money to the likes of crime organizations such as ACORN
Leading Indicators May improved 0.4%… very good considering stocks are down.
Philadelphia Fed Jun dropped from 21 to 8 … Not good for Philly but Philly is negligible and NYC surged earlier this week
Many people are now running out of the maximum 99 weeks of unemployment available. That will force many people to look for jobs or take unlisted handyman type jobs in the underground economy. As socialist raise taxes the underground economy becomes attractive to more people. It is a form of tax avoidance and a major part of the Greek and Italian economies. The US unemployment rate would already be falling if it were not for BP incompetence.
Market Outlook June 18, 2010
The market failed to give up its gains thus far and stayed above its 50-day moving average (50DMA) further reducing worries that we might have entered a bear market. The next potential resistance area is the (100 DMA) and then the March 15 highs.
Global equities are still at the cheapest level relative to bonds since the collapse of Lehman Brothers Holdings Inc., a sign that shares in the U.S. and Europe may rally or bonds will falter. It now looks more like a stock market rally and bonds will hold their own with little inflationary danger.
Emerging markets and particularly Asian pro-shares continue to be very attractive now. China is booming again. The market has already corrected more than it did in 2004 at the end of the first year after the low point in the last recession. Then the market resumed rising sharply the rest of that year.
The Chinese Government said last week that exports out of the country were up 48.5% in May compared to a year ago, the biggest jump in more than six years. That economic engine is working once more. European countries are now reporting the same.
World Markets
Asian markets were neutral again last night. Shanghai down -1.8%, Hong Kong up 0.7 %, India down -0.3%, S. Korea up 0.2%, and Japan down -0%.
European markets are flat in a range of about -0.2% to 0.2% this morning about half way through their day.
US pre-market futures are flat this morning. U.S. Futures are a snapshot of the moment and do not correlate with what happens by the end of the day.
A positive Chinese export economic report last week, the gains in the euro, and the EC holding low interest rates have turned the markets positive. Apple-like technology that exploits immature children and adults is losing its luster and consuming critically needed American Internet bandwidth.
We expect some rapid gains (market pops) interspersed with caution as investors realized the end of the world will not occur in 2011 if Americans throw all the leftists out on the streets again after the American November elections.
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