China recovery is being accelerated by domestic consumption as wages rise.

China recovery is being accelerated by domestic consumption as wages rise.

Stocks are ready to bounce. It is not the end of the world until Obama says high taxes go into effect.

The Dow Jones Industrials, DJI, is down 10% from the high… the definition of a correction.
http://finance.yahoo.com/q/ta?t=6m&l=on&z=m&q=l&p=b&a=m26-12-9%2Cv&c=&s=%5Edji


World Markets:
China recovery is being accelerated by domestic consumption as wages rise and China westernizes.

Economic Calendar
Last week:
GDP Deflator Third Estimate Q1 another downwardly revision to first quarter GDP growth (2.7 percent vs. 3.0 percent), with a large reduction in first quarter final sales growth to 0.8 percent from 1.4 percent. This is Obama's socialist state fraud in fabricating the high initial numbers so his liberals, socialists, and communists could claim an robust 3+% recovery and then switching gears and lower the first quarter numbers so that the second quarter do not show a serious double dip. That is the way communist countries have always operated. They are pretend societies where people pretend to have real work and show lavish living on TV and pretend not to be starving. The hungry people then think either they are personal failures and everyone else is doing well under socialism or they know it is a fraud and they thing western capitalism is perpetuating the same fraud on their lavish TV shows. Socialist governments hire 200 people to do the work of 50 people just to pretend the economy is robust and give everyone a job.

U Michigan Sentiment - Final June rose to 76% from 75.5%. - Good news
Personal Income in May rose 0.4% the same as initially reported last month. -Good news
Personal Spending May up 0.2% better than the 0% reported last month. - Good news
PCE prices up 0.2% or 2.4% per year- good and not inflationary or deflationary

Yesterday
Case-Shiller 20-city Index Apr rose 3.8% vs. 2.35% last month - Good News
Consumer Confidence Jun declined to 52.9% from 63.3% initially reported last month - Good news since it is showing a lack of confidence in Democrat-socialists so we can vote them out with only two years of Obama damage. If people were confident with this socialist government we would be in deep trouble.

ADP Employment Change June: Was a net 13K improvement after the temporary increase in census workers last month who are slowly being let go as the census nears completion. Net hiring has increased every month since April.
Chicago PMI Jun : At 59, 1 down slightly (within statistical variation) from 59.7 last month. Anything over 50 is good.
Crude Inventories 06/26 last wee declined 2M removing the 2M increase the prior week implying oil prices are stable and slowly rising.

Today
Jul 1 8:30 AM Continuing Claims 06/19
Jul 1 8:30 AM Initial Claims 06/26
Jul 1 10:00 AM Construction Spending May
Jul 1 10:00 AM ISM Index Jun
Jul 1 10:00 AM Pending Home Sales May
Jul 1 2:00 PM Auto Sales Jun
Jul 1 2:00 PM Truck Sales Jun

The Week Ahead
Jul 2 8:30 AM Nonfarm Payrolls Jun
Jul 2 8:30 AM Unemployment Rate Jun
Jul 2 8:30 AM Hourly Earnings Jun
Jul 2 8:30 AM Average Workweek Jun
Jul 2 10:00 AM Factory Orders May


Market Outlook July 1, 2010
We are waiting for the bounce. The time for people and corporations to take profits is this year before the hefty tax increase goes into effect. Therefore we expect to see a rise in profits as December approaches and then a drop in profits and actual tax payments next year. Socialists show their abject stupidity in not knowing that productive people can legally delay or accelerate when they report income just by when they close transactions. Real estate investing at current low prices is just one way to invest and not have to take profits until the socialists are thrown out of office.

GE/MSNBC/Pravda/Jim Cramer cannot get any more negative than he was last night. He said the economic indicators, including gold, all make sense if we are entering a German Weimar Republic type depression followed by hyperinflation. After that happened 110 years ago the Germans elected National Socialist Adolf Hitler and he attacked and expropriated the wealth from the richest 2%, the bankers, who happened to be mostly Jewish. That is what Obama said he would do if elected. Next year Obama reiterated they plan to attack the wealth of America's richest 2% too. Obama also seems ready to pull the plug on Israel's economic support to please his socialist Moslem jihadist brotherhood. In the mean time the Germans are trying to get rid of the lazy, the ignorant, the incompetent, the illegals, and the criminals who happen to be predominantly Moslem Turks living in Germany. The French have made it illegal for women to be humiliated by being forced to follow the Moslem dress code or be beaten to death by other Moslems if they do not profusely claim they love and voluntarily follow the code. It is not discriminatory to prohibit the dress code because German men can't force their women to wear iron chastity belts either. In most European countries they even frown on Moslems using trucks to cripple their children who steal to avoid starvation under socialist Moslem rule. That is why so many Moslems become suicide killers… they have nothing to loose under the Moslem belief system.


World Markets
Asian markets were down with underlying stability last night. Shanghai down -1.0%, Hong Kong closed, India down -1.1%, and Japan down -2%.

European markets are down in a range of about -0.7% to -1.4% this morning about half way through their day.

US pre-market futures are flat this morning. We believe the market will soon 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 Obama socialist tax and throwaway spending begins. They plan to tax the productive people and give it to the tyranny of leftist pigs; the lazy, the ignorant, the incompetent, the illegal, the criminals, and the perverts. Even the European socialists refuse to be as irresponsible as the Obama Administration. The Europeans say they are going to cut government jobs now to reduce debt and wasted manpower.