Obama attacks Moslem Holy soils in three countries. Such a broad attack has not been launched since WWII.

Obama attacks Moslem Holy soils in three countries. Such a broad attack has not been launched since WWII.

Despite reports of Obama's air-strikes, troops loyal to Gaddafi close in on opposition fighters holding the oil port of Ras Lanouf, forcing rebels and civilians to retreat. Obama now has America at war within three Moslem nations. You can be sure Special Forces are at work on the ground even in hostile nations that America is not already at war with.

Treasuries fell as the government sold $35 billion of two-year securities at the highest yields in almost a year on concern the Federal Reserve will lose control of interest rates as soon as QE2 ends because other countries do not want to fund the Obama $trillions in deficits. The cost of borrowing to support Obama spending on ACORN, Rev. Wright, and Black Panther type objectives is increasing.

World Markets:
Poland’s public debt rose to 53 percent of economic output last year yet still did not trigger any austerity measures, according to the Deputy Finance Minister. After all Japan has been over 100% for a decade.

European confidence in the economic outlook worsened in March but not nearly as much as reported in America on Tuesday. Surging energy costs, nuclear radiation, and Japan’s earthquake threatens global growth. The index of executive and consumer sentiment in the 17- nation euro region slipped to 107.3 from a revised 107.9 in February.

China's stock market prices are in a triangle formation going nowhere and will breakout probably within a month. At this point we believe the breakout will be down because most of the world is tightening belts now and letting interest rats rise to slow demand for debt. Higher rates will put extreme pressure on countries like the "PIIGS", Portugal, Ireland, Iceland, Greece, and Spain. Spain will be the next to fall and beg for a bailout because socialist unions will riot if they don't. The contagion is spreading in the EU.

US Market Highlights
Latest reports out
Personal Income rate for Feb dropped to 0.3% from 1.2% last month.
Personal Spending increased in Feb by 0.7from 0.3% last month.
PCE Prices - Core inflation in Feb was 0.2%/mo (2.4%/yr) up from 0.1%/mo or 1.2% last month.
Pending Home Sales Feb rose 2.1% offsetting most of the decline of -2.8% last month
Mar 29 Case-Shiller 20-city Index Jan fell 3.1%. US single family home prices fell for the seventh straight month bringing prices down to the April 2009 lows.
Consumer Confidence Mar plummeted steeply to 63.4 from 70.4 last month, a new three-month low.

This week's upcoming reports
Mar 30 7:00 AM MBA Mortgage Index 03/25
Challenger Job Cuts Mar
ADP Employment Change Mar
Crude Inventories 03/26

Mar 31 8:30 AM Initial Claims 03/26
Continuing Claims 03/19
Chicago PMI Mar
Factory Orders Feb

Apr 1 8:30 AM Nonfarm Payrolls Mar
Nonfarm Private Payrolls Mar -
Unemployment Rate Mar
Hourly Earnings Mar
Average Workweek Mar
ISM Index Mar
Construction Spending Feb
Auto Sales Apr
PM Truck Sales Apr

Market Outlook March 30, 2011
Tuesday buying volume was low but rose 8% from Monday as buyers tricked back. The VIX trend indicates the second leg of the decline may have just begun. http://finance.yahoo.com/q/bc?s=%5EVIX&t=5d&l=on&z=m&q=l&c=

GE/MSNBC/Pravda lied as usual and said the 50dma held but we told you the truth that it broke down and became the upper resistance level confirming at least an intermediate range decline.

The high prices we are seeing are not due to high prosperity causing demand. The high prices are due to QE2 (easy credit) which is about to end and the artificial interruption of energy supplies by the socialists in the oval office. We need to warn you now to liquidate gold and silver as this could be like the market in 73 or 78 when the markets rose and then hit old bottoms. Under Jimmy Carter's malaise he cut energy supplies just as Obama is doing. The current move is in anticipation of a repeat of 1981. That was a one-time occurrence because the USA went off the gold standard in 1970 under President Nixon. The success or President Ronald Reagan was due to his selection of intelligent advisors not socialists and gold fell rapidly from $800/oz to $200/ox and stayed very low for almost 20 years. President Reagan was a supply-side advocate and ended the artificial shortages that president Jimmy caused in everything from toilet paper to gold. So far Barrack Hussein Obama has at least caused no run on toilet paper. It should also be pointed out that under President Jimmy many seniors began eating pet food because President Jimmy did not raise their payment either. The difference now is that president Barrack Hussein Obama has so much corruption he has half of Puerto Rico and Harlem retiring by age 50 on social security disability while American Workers who retire at 66 get no adjustment for inflation in food and heating costs.

The markets all previously broke below their 50 point moving averages and now appear to be topping out at that level last week. MSNBC lies and says the market did not break through the 50dma. You be the judge. To us it looks like the 47dma is no longer a support level but instead has become the resistance level.

S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=

We think the next stock market support level will be down at Nov 4, 2010 levels about another 7% lower. But actually the main support starts about 17% lower than yesterday's close.

World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. That means 60% of the stock market rise from the 2009 lows could evaporate as the initial rise evaporated under Jimmy Carter. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Asian markets were up last night. China down -0.1%, Hong Kong up 1.7%, India up 0.9%, and Japan up 2.6%.

European markets are up this morning in a range of about 0.4% to 1.5% half way through their day.

US pre-market futures are up slightly at about 0.4 % at 7:30 AM EST.