Obama wants gasoline at $4.50 per gallon by this summer according to GE/MSNBC/Pravda this morning.

Obama wants gasoline at $4.50 per gallon by this summer according to GE/MSNBC/Pravda this morning. 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, and their other friends. High energy prices will make energy sector companies recover but they provide few American jobs. High energy costs will raise the costs of business and travel. Airlines will suffer badly. Obamacare will give 15 million illegal immigrants and 25 million indigents better health care than American workers can afford for themselves.

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 stocks. 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.

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 feces left on lettuce and tomatoes due to their human fertilizer source customs 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. Duhh--That is Clinton's great Mexican trade policy. Now we have duhh-Obama's great energy policy and Obamacare swinging a terrorist sword over our heads. Leftists, big international Oil, and terrorists are the ones who want high energy prices. Oh yes, and also Obama.

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

Today
Jan 4 10:00 AM Factory Orders Nov
Jan 4 2:00 PM FOMC Minutes
Jan 4 3:00 PM Auto Sales Jan
Jan 4 3:00 PM Truck Sales Jan
Jan 4 3:00 PM 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 4, 2011

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. The first week of the year is when the wishful thinkers buy stocks because they think that predicts the month of January and that January predicts the year. As goes January so goes the year is their saying yet studies reported over the years show no correlation.

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 up last night. China's market opened and was up 1.6%, Hong Kong up 1%, India down -0.3%, and Japan was up 1.7%.

European markets are up this morning in a range of about 0% to 2.2% half way through their day.

US pre-market futures are up about 0.35 % at 8:00 AM EST.