High energy costs are a major tax on the free world and are the biggest source of funding for the world's hate faiths.

High energy costs are a major tax on the free world and are the biggest source of funding for the world's hate faiths. Gold, silver, and stocks were plunging earlier.

People who have taken their profits are relieved they did. Gold suffered its greatest single day decline in 11 months. Silver prices plummeted. Both are about 25% overvalued. High energy prices fund the left and the of hate faiths.

Obamacare will give 15 million illegal immigrants and 25 million indigents better health care than American workers can afford for themselves. Oh yes, and do you remember when Obama took office and he said American wounded soldiers should pay for their own medical insurance because they volunteered and they knew the risks they were taking? Don't you just love him? The leftists think he is brilliant!

Investors are now being conditioned to hang on as the market gets ready to correct down. The conditioning to stay put takes place at both the market tops and the bottoms. What is happening now are wide swings down followed by recovery and reinforcement of the investors who do not take profits. After a 3% swing the May 6 Flash crash was a 10% swing and many investors still did not take that as a warning and could have saved themselves from a 15% loss over that month. And then at the bottom there was a similar wide swing and a second bottom when investors poured out of the market and lost an opportunity to gain everything back. Investors should be grateful for the gains right now and take them. If energy prices increase further we will have another severe recession starting soon.

Obama wants gasoline at $4.50 per gallon by this summer according to GE/MSNBC/Pravda. Obama has cut US exploration and international supply with moratoriums. $140 /barrel oil is coming but will the economy crash before or after that! Leftists want high energy prices to fight global warming and to redistribute wealth to Hamas, Iran, George Soros and their other friends. High energy prices will make energy sector companies recover but it is a tax on the American economy. High energy costs will raise the costs of business and travel. Airlines will suffer badly. It will work to defeat economic and job recovery but would help sell a few electric cars. Only the terrorists benefit because the oil kingdoms fund the world terrorists and have been trying to buy nuclear bombs to attack Israel, Europe, and America.

World Markets:
Yes, the emerging markets are booming again but Jim Cramer never admits that while their economies rise twice as fast as the USA they then fall three times as fast. Look at how fast Mexico grew when Clinton gave them our manufacturing business! At first the American job losses, inferior Mexican air conditioning products and the American deaths from Mexican human feces left on lettuce and tomatoes took a heavy toll on the American worker. But now Mexico has become a major drug producing nation with Mexican trucking rights to go anywhere in America thanks to Obama considering trucking their free trade right. Duhh--That is Clinton's great Mexican trade policy. Now we have duhh-Obama's great energy and drug policy and Obamacare swinging a terrorist sword over our heads. Leftists, big international Oil, and terrorists are the ones who want high energy prices to punish Americans.

The routes through Turkey and Greece seem to be the last major entry point loopholes for illegal immigrants who go to Europe because European socialist welfare payments are greater than the welfare 95% of the population on Saudi Arabia, Iran, Iraq, and Pakistan get from their Moslem welfare states. The Moslems take advantage of European welfare payments to clear $1000 per child per month in payments plus medical coverage. That is thought to be a western gift to help them conquer the world via high birth rates.

Economic reports:
Construction Spending Nov 2010 subsided to 0.4% from 0.7% improvement the previous month but down 6% from 2009.
http://www.martincapital.com/chart-pgs/Pg_hous.htm

ISM Index Dec shows management optimism is at 57, up slightly from 56.6 last month and back to where we were in 2002. http://www.martincapital.com/chart-pgs/Pg_ism.htm

Factory Orders Nov were up 0.7% after being down 0.7% the previous month.
Auto Sales Jan US auto sales rose 11% in December, making up the entire increase for the year.

Obama returned from his vacation yesterday so it is hoped that he will get the nation's financial statistics out soon for both last week and this week. I think this is the first time in the history of America that the government slackers cannot get financial statistics out in time. It must be because they no longer report facts, the manufacture the numbers the way the communists do. That is because most of Obama's old buddies are communists. Obama is a hands on manager like Jimmy Carter and his team sleeps when he is out of the office.
FOMC Minutes -Nothing new

Today
Truck Sales Jan
Truck Sales Jan
Jan 5 7:00 AM MBA Mortgage Purchase Index 12/31 -
Jan 5 7:30 AM Challenger Job Cuts Dec
Jan 5 8:15 AM ADP Employment Change Dec -
Jan 5 10:00 AM ISM Services Dec
Jan 5 10:30 AM Crude Inventories 01/01
Jan 6 8:30 AM Initial Claims 01/01
Jan 6 8:30 AM Continuing Claims 12/25
Jan 7 8:30 AM Nonfarm Payrolls Dec
Jan 7 8:30 AM Nonfarm Private Payrolls Dec
Jan 7 8:30 AM Unemployment Rate Dec
Jan 7 8:30 AM Hourly Earnings Dec
Jan 7 8:30 AM Average Workweek Dec
Jan 7 3:00 PM Consumer Credit Nov

Market Outlook Jan 5, 2011
Funds are fully invested. Trading volume has not picked up. There is no evidence the current market level is due to frightened workers returning to the stock markets. The GE/MSNBC farce has run its course. There are record low levels of cash being held by mutual fund managers now. The AAII poll of individual investors is record optimistic, and the low VIX (fear) Index is at record levels of complacent optimism.

Gold, silver, and stocks were plunging earlier. People who have taken their profits are relieved they did. High energy costs are a major tax on the free world and are the biggest source of funding for the world's hate faiths.

Goldman Sucks invested in Facebook to handle the biggest swindle of this century. They plan to make billions on suckers who buy into the next Facebook IPO. The FED is investigating Goldman Sucks again. Facebook is now about 5000% overvalued and has no patent protection for the product. It is an easy entry business like the restaurant business. Already people are getting annoyed with Facebook businesses who pretend to want to be your buddy by using the name of a friend who made the mistake of friending them and then they bombards your email and twitter with advertising saying your friend recommended them to you. It is the latest advertising invasion scam and Facebook will soon be the most hated service in town.

Market volume indicates that investors have not returned to stocks. Perhaps they have bought gold and silver instead because they went through the roof and are due for a major correction. There was some evidence investors were returning to stocks three months ago but that faded in December. Perhaps investors are buying real estate? Real estate is a much better investment than stocks if you have a reliable source of income. But so many Americans have seen their credit ratings fall and cannot buy a house now.

If there is a sell off, it should come within the first weeks of January. Obama has done nothing for two years to liquidate the crippled mortgage market. This has frozen worker mobility and is destroying credit ratings so that housing will take five years just to recover to where it was before Barack Obama.

By mid year we expect state and federal worker layoffs because the socialists have not put their government houses in order. Many predict a major sell off at mid year when the individual states are in crisis. But typically the stock market is six month ahead of economy. QE2 ends mid year but we expect that to be extended.

World Markets
Asian markets were down last night. China's market was down -0.5%, Hong Kong up 0.4%, India down -1%, and Japan was down -0.2%.

European markets are plummeting this morning in a range of about -1%% to -1.6% half way through their day.

US pre-market futures are down about -0.7 % at 7:30 AM EST.