Stocks stabilize again at old resistance levels

Stocks stabilize again at old resistance levels

The panic of investors yesterday was because the U.S. Conference Board revised sharply downward its fabricated economic indicators for China, to 0.3% for April instead of their previously fabricated 1.7% growth. Why would anyone believe this outfit that admits errors of 460% after two months. That is the same fraud Obama practices only he is more discreet. Obama is continuously dropping the early growth estimates so that in the future they look relatively better. They are either stupid and cannot get it right the first time or else they are corrupting the economic statistics. The U.S. Conference Board should have to say China's April growth was 0.3% plus or minus 1.4% or just admit it is an absolutely worthless number that is nothing but an educated guess. That is how bad that U.S. Conference Board China number is. Perhaps they are leftists too.

Market volume jumped 50% on the sharp market decline to previous lows on false GE/MSNBC/Pravda rumors of a recent slowdown in China after the Conference Board report. The slowdown began last year when we said to get out of Emerging markets. Last month we recommended phasing back in because the worst is over.

People buy treasuries not for the low interest they pay but because when the interest rate declines from 3% to 2% the treasuries appreciate 33% ((3-2)/3). Bond investments work under declining interest rates and get infinitely good as the interest rate approaches zero. But it is a two edged sword. If you are wrong and interest rates go from 2% to 3% you lose 50% of your capital ((3-2)/2)which means you need to hold them to maturity to break even. Therefore shorter maturity is better at the market low and longer maturity is better when the recession is starting and longer term rates drop faster.

GE/MSNBC/Pravda/Jim Cramer continues negative as Democrat-socialist tax increases begin this January.
It looks like we are close to recent lows. Jim Cramer is recognizing that government meddling is the cause of the current economic problems.

Yesterday world markets were reeling again because unions have the power to destroy socialist economies where the leftist idiot-politicians give into union coercion and then the unions think they paid into their 50-55 yr. age retirement programs when in fact they are grossly overpaid, inefficient and in the union because Greek socialist unions are for lazy nasty people unlike decent unions in free economies.


World Markets
Asian markets were down with underlying stability last night. Shanghai down -1.2%, Hong Kong down -0.6%, India up 1%, Jakarta up 0.7%, and Japan down -2%.

European markets are flat in a range of about -0.1% to +0.2% this morning about half way through their day.

US pre-market futures are up 0.8% this morning. We believe the market will now bounce higher as people realized the largely faked Obama socialists recovery is not fading, it just was not as good as the lying Obama socialists would have American's believe. The real worry is a double dip next year as the idiotic socialist tax and throwaway spending begins. They plan to tax the productive people and throw it to the tyranny of leftist pigs; the lazy, the ignorant, the incompetent, the illegal, the criminals, and the perverts.

America's greatest threat is Obama's big White House toilet bowl of Afro-Malaysian-Muslim socialism

Never before have Americans been faced with a president advancing the causes of a coalition of leftist, the lazy, the ignorant, the incompetent, the illegal, the criminals, and the perverts. However, Obama is pretty much exposed now for what he represents and we are seeing the leftists being defeated in most regions of our country. It is the intent of the leftists to create a permanent underclass in America of leftist, the lazy, the ignorant, the incompetent, the illegal, and the perverts so that the socialists will have the absolute tyranny of Communism. This trend is growing in the world even though Communism has been a long-term economic and social failure everywhere it has been instituted. In the transition though the Marxists can make a lot of money. Just look at the salary increases their friends and relatives get through corruption of nepotism and influence peddling. Look at the sudden acquired wealth of Obama's family in the last six years. So it is the red brigade that brings down the economy that gets rich by making deals and stealing the spoils. But history tells us the next stage becomes extortion and murder and then the refugees start to flee the socialist oppression. Finally the reds build walls to imprison their populations to extort the last bit from them. Once the socialist get their criminal majority they are virtually impossible to stop. Remember the National Socialism of Hitler and the Communism of Stalin worked the same way and was arrived at in free elections.