European Obama parade in Spain is criticized abroad. Obama's wife compared to the clueless Marie Antoinette.

European Obama parade in Spain is criticized abroad. Obama's wife compared to the clueless Marie Antoinette.

Europe wonders how Obama's wife makes 5 times what European doctors make given her social and technical ineptness. Could it be due to the grants she gets for her employer using her position of corrupt influence in Washington. Honest politicians do not expose themselves to influence peddling by family and friends.

World Markets:

The American Markets held and seem ready to surge and say recovery is under way. Hedge funds including GoldmanSucks have recently lost money betting against the economy and market strength. Goldman thinks there is nothing wrong with selling lemons to their customers. Many customers are suing for damages. Goldmansucks also seems to have been betting against American investors but is losing money this time trying to cripple the markets again.

Corporations have cash and are beginning to warm to acquisitions.

Corporate spending of their massive accumulated cash reserves is beginning to surge. That will come in three forms. Corporations that think they are undervalued will buy some corporate stock back. Secondly, corporations will upgrade their data processing to improve employee productivity. Thirdly, acquisitions will boost the markets and this will appear suddenly and be an upside propellant.

Good quarterly earnings reports came out and better reports will come. But fear of Obama National Socialism and corruption has people buying treasuries and not stocks. Socialist Obama and his socialist in Congress are feared to be attempting to make the Federal Government bigger than the private sector. The US government already employs more people than the top 500 corporations combined.

Economic Calendar
Early Last week was good
Factory Orders Jun declined -1.2% an improvement from -1.8% last month. This is good, see:
http://www.martincapital.com/chart-pgs/Pg_mnord.htm
Pending Home Sales Jun declined 2.6% an improvement from -30% last month after the tax credit vanished
Auto Sales Jul improved about 10% but not final
PM Truck Sales Jul about 10% but not final
ADP Employment Change Jul at 42K vs. 13K last month for new private sector jobs created
ISM Services Jul up to 54.3 from 53.8 last month i.e. progress.
Crude Inventories 07/31 at 2.8M from 7.3M last week
Aug 5 8:30 AM Continuing Claims 07/24 dropped to 4537 from 4571, good news
Aug 5 8:30 AM Initial Claims 07/31 rose to 479 from 460 not good. But unemployment lags and with socialists in power more people actually like to go on the dole and relax and be happy. If you want to know what Obama sees for the future of America look where he comes from: Indonesia and Nigeria two islamic socialist states rulled by incompetence and corruption. You can also look close to home to Cuba and Haiti where incompetence and socialist stupidity are hallmarks of Obamacare type medical systems. There they have dropouts as doctors because all the intelligent students fled those countries.

Friday was better:
All great news for the economy.
Nonfarm Payrolls Jul dropped much less. -131K vs. -221K last month. This includes government jobs. Good
Nonfarm Payrolls - Private employment in Jul increased 71K vs. 31K the previous month. Great
Unemployment Rate Jul remained at 9.5%. Doomsday hedge fund shorts wanted an increase. Good it is stabilizing so it can finally go down again.
Hourly Earnings Jul rose 0.2% vs. losing 0.1% the previous month. Good indication of hiring improving and wages stabilizing.
Average Workweek Jul increased to 34.2 vs. 34.1 last month. Good sign of economic pick-up.
Consumer Credit Jun decreased -1.3B vs. -5.7 last month indicating consumer spending may have finished bottoming.

Today no reports

This week:
Aug 10 8:30 AM Productivity-Prel Q2
Aug 10 8:30 AM Unit Labor Costs Q2
Aug 10 10:00 AM Wholesale Inventories Jun
Aug 10 2:15 PM FOMC Rate Decision Aug 10
Aug 11 8:30 AM Trade Balance Jun
Aug 11 10:30 AM Crude Inventories 08/07
Aug 11 2:00 PM Treasury Budget Jul
Aug 12 8:30 AM Initial Claims 08/07
Aug 12 8:30 AM Continuing Claims 07/31
Aug 12 8:30 AM Export Prices ex-ag. Jul
Aug 12 8:30 AM Import Prices ex-oil Jul
Aug 13 8:30 AM CPI Jul
Aug 13 8:30 AM Core CPI Jul
Aug 13 8:30 AM Retail Sales Jul
Aug 13 8:30 AM Retail Sales ex-auto Jul
Aug 13 9:55 AM Mich Sentiment Aug
Aug 13 10:00 AM Business Inventories Jun


Market Outlook Aug 9, 2010

The stock market's penetrated the 100-day moving average line and did not retreat.

A breakout today is now probable. You know it is a breakout if it surges and does not retreat immediately.

The cash infusion from corporations will soon let loose a bull market and a fresh cash influx for acquisitions and expansion of the economy.

We expect a bigger rally to also follow if the corrupt socialists are voted out of office in November. Then Obama socialism can be stopped in its tracks. The imperatives are no new taxes, no new federal programs like Obamacare, and cut state and federal do-nothing jobs. State and federal government job cuts are needed and no new taxes.

World Markets
Asian markets were up last night. Shanghai up 0.5%, Hong Kong up 0.6%, India up 0.8%, Seoul up 0.4%, Taiwan up 0.9 and Japan down -0.7%.

European markets are up in a range of about 1.3% to 1.6% this morning about half way through their day.

US pre-market futures are up about 0.4% this morning.