Greece likely to be ejected from the EU

If Greece cannot abide by EU limits on maximum % spending vs. their GDP then Greece will likely be ejected.

When did anyone ever exclude temporary workers such as census workers before? Never! The temps are always there and always included in employment figures. The census is already 2/3 complete and even though they are hiring for the last phase they have been letting most census workers hired more than three months ago go. They do that so that temporary Census workers do not become eligible for unemployment compensation.

What we saw last week were excellent economic reports that were all spun negatively by GE/MSNBC/GeorgeSoros/Jim Cramer/Pravda. They pumped up the news at the highs in April so their buddies could dump stocks on MSNBC listeners and now when the market is at its low point they spin the news negatively so their buddies can buy back in at low prices. Martha Stewart did not serve time for listening to Jim Cramer. Socialism is corrupt because it is not rule by law it is rule by the whim of the majority in power. It is the old political spoils system that Teddy Roosevelt and Charles Lyman eliminated after the Civil War when they instituted the Federal merit system. Obama is appointing clueless leftists who are not qualified to hold public positions and who are corrupt from the get go.

Martha Stewart did not serve time for listening to Jim Cramer. Cramer is exactly 180 degrees out of phase with the stock market. In two months when GE/MSNBC/GeorgeSoros/Jim Cramer/Pravda tells us the economy is recovering it will be the time to sell everything and short whatever they recommend.

Remember a few weeks ago they spun consumer confidence negatively? Compare for yourself the two surveyed levels of consumer confidence at. However the depression psychology the leftists always spread can become self full filling. That is what got Obama elected. That will probably hurt consumer confidence next month.
http://www.martincapital.com/chart-pgs/Pg_conco.htm

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 1056 June 5 1065

The same is true for the Power Shares, QQQQ
http://finance.yahoo.com/echarts?s=QQQQ
Feb 8 42.62 June 5 45.1

The same is true for the Dow Jones Industrials, DJI
http://finance.yahoo.com/echarts?s=%5EDJI
Feb 8 9908 June 5 9931

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
Feb 8 2125 June 5 2219

The same is similar for the New York Stock Exchange, NYA, where a breakdown is defined as a plunge not a slight dip.
http://finance.yahoo.com/echarts?s=%5ENYA
Feb 8 6713 June 5 6600

GE/MSNBC/GeorgeSoros/Jim Cramer/Pravda want you to sell now. So that obviously means it is time to buy.


World Markets:


Economic Calendar
Last week
USA personal income increased $54.4 billion, or 0.4 percent, and disposable personal income increased $57.6 billion, or 0.5 percent, in April, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $4.0 billion, or about 0.1 percent.

U. Michigan Consumer Sentiment May increased to 73.6 from 73.3 last month.

The economic recovery gained strength on the greatest rise in construction spending in a decade and the 10th straight month of expansion for the manufacturing sector. Industry spending rose 2.7 percent with gains in all major sectors, the Commerce Department said Tuesday. In the manufacturing report, the group's employment index, which measures employers' willingness to hire, rose 1.3-percentage points to 59.8. That was the highest level since May 2004. New orders, a gauge of future production, were unchanged at 65.7. "We haven't lost much in the way of momentum," said Norbert Ore, chairman of the ISM's manufacturing survey on a conference call. "The manufacturing sector continues to move ahead."

In a separate report Tuesday, the Institute for Supply Management, a trade group of purchasing executives, said that after a nearly six-year high in April the 59.7 reading for May was again well above the 50 level that indicates expansion. Export orders rose last month despite the debt crisis in Greece.

Government spending rose 2.4 percent aided by multi-trillion dollar boondoggle Congress passed in February 2009. State and local spending jumped 2.3 percent and federal spending rose 2.9 percent.

Residential construction spending surged 4.4 percent in April. The other major sector, nonresidential construction, climbed 1.7 percent. That marked the first advance in this category since March 2009. The strength in April came from gains in private sector work on communications projects and power generation facilities. Construction of office buildings and the category that includes shopping centers fell in April that is good to reduce the glut.

Homebuilders have expressed optimism that construction will keep improving even with the expiration of the homebuyer tax credits. Luxury homebuilder Toll Brothers Inc. confirmed last week that it had a narrower loss in its latest quarter and had seen a surge in new home orders. The company said the strength in orders was holding up in May even though the homebuyer tax credits had come to end. Pulte Group Inc., the nation's largest homebuilder, reported in early May that it had been able to reduce its loss for the first quarter and expected to be profitable this year. That would mark a major turning point for the company, which has posted losses in 14 consecutive quarters.

Challenger reports job cuts announced by U.S. employers declined 65% in May, indicating the labor market is improving.

Pending home sales soared 6.0%, according to the National Association of Realtors. They hit a level not seen since October 2009.

Crude Inventories 05/29: Oil prices in Asia after U.S. crude inventories fell more than expected, suggesting consumer demand is growing. Crude supplies fell more than expected, dropping by 1.4 million barrels, the American Petroleum Institute said late Wednesday.

Auto Sales May, Ford sales up 20%, GM sales up 17%, Chrysler up 33%, Toyota down.

Truck Sales May, Ford sales up 22%, GM sales up 17%.

Service industries in the U.S. expanded for a fifth month and factory orders rose, pointing to a broadening economic recovery that’s generating more jobs.

Jun 3 8:15 AM ADP Employment Change May improved 30% but the manipulated revision to last month made it look 18% poorer
Jun 3 Productivity-Rev. Q1 revised downward from 3.6% to 2.8%, still good.
Jun 3 Unit Labor Costs Q1 declined 1.3%, goodness
Jun 3 Initial Claims 05/29 declined slightly from 460K to 456K (manipulation removed).
Jun 3 Continuing Claims 05/22 up 1.7% (manipulation removed). Not good at all.
Jun 3 Factory Orders Apr improved more than 1.2% (manipulation removed). good
Jun 3 ISM Services May 55.4 (no change) but goodness

Last Friday
Jun 4 When did anyone ever throw out temporary workers such as census workers before? Never! The temps are always there and always included. What we saw last week were excellent reports that were all spun negatively by GE/MSNBC/GeorgeSoros/Jim Cramer/Pravda. They pump up the news positively so their buddies can dump stocks on their listeners and now when the market is at its low point they spin the news negatively so their buddies can buy back in at low prices. Non farm Payrolls May rose 431K in may vs. 290K last month, a 45% rise in hiring. The unemployment situation is improving because we can see 80% of graduating students are finding jobs before they graduate. Also, the number of people still eligible for 99 weeks of unemployment is peaking this month. That should subside by the end of June causing unemployment to fall even faster. So now is the time to buy in advance of improving employment opportunities in the USA.
Jun 4 Unemployment Rate May dropped from 9.9% to 9.7% the second monthly drop in a row.
Jun 4 Hourly Earnings May rose 0.3% after no increase last month
Jun 4 Average Workweek May rose to 34.2 days from 31.1 days
These are all excellent results.

This week

Jun 7 3:00 PM Consumer Credit Apr

Jun 9 10:00 AM Wholesale Inventories Apr
Jun 9 10:30 AM Crude Inventories 06/05
Jun 9 2:00 PM Fed's Beige Book Jun

Jun 10 8:30 AM Initial Claims 06/05
Jun 10 8:30 AM Continuing Claims 06/29
Jun 10 8:30 AM Trade Balance Apr
Jun 10 2:00 PM Treasury Budget May

Jun 11 8:30 AM Retail Sales May
Jun 11 8:30 AM Retail Sales ex-auto May
Jun 11 9:55 AM Mich. Sentiment Jun
Jun 11 10:00 AM Business Inventories Apr



Market Outlook June 7, 2010

We are once again at critical support levels. It would be unusual for the support levels to yield the very first time they are hit. It usually takes a few months of testing before a support level gives way. We expect to see advancing stock markets here and abroad most of the next four to ten weeks


World Markets

Asian markets were down sharply last night following the American decline on Friday. Shanghai down -1.6%, Hong Kong down -2%, India down -2%, and Japan down -3.8%.

European markets are down in the range from -0.2% to -0.6% this morning about half way through their day.

US pre-market futures are flat 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.