Futures tumbled from a 30-month high yesterday as the IMF said in its World Economic Outlook that the U.S. economy will expand at a slower pace than i

Futures tumbled from a 30-month high yesterday as the IMF said in its World Economic Outlook that the U.S. economy will expand at a slower pace than in 2010 amid an unemployment rate above 8 percent and a drop in consumer confidence. Japans estimate also was reduced.


World Markets:
Lisbon asks $116 Billion Portuguese Bailout.
Japan’s Nuclear and Industrial Safety Agency lifted the rating level to 7 from 5 on the global scale, the same as the 1979 partial reactor meltdown at Three Mile Island in Pennsylvania. Japan’s nuclear crisis may be raised to the highest level of severity, matching Chernobyl’s rating, as increasing radiation prompts the government to widen the evacuation zone.

Under Jimmy Carter, gold rose to over $800/oz. But by 1999 gold fell back below $290/oz again. Now it is about $1470/oz. We need to warn you now to liquidate gold and silver when it has run up, not after it drops quickly back to about $400 and $8 respectively.
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Canadian job hiring took a pause.
Ireland's ratings were lowered again. Inflation in China and India is not yet in control.
Inflation in India and China is getting out of limits. Gasoline and fuel oil prices doubled under Obama but he and Bernacke say inflation is less than 2.5%. Only morons still believe that.

US Market Highlights

Latest reports
Continuing Claims 03/26 at 3741K up from last weeks 3714K 0.5% socialist manipulation removed
Consumer Credit Feb $7.1B up from $5.0B, 7% socialist manipulation removed
Wholesale inventories increased again this month by 1% meaning that if sales do not pick up then production will be cut and jobs will be lost.

This week
Apr 12 8:30 AM Trade Balance Feb
Apr 12 8:30 AM Export Prices ex-ag. Mar
Apr 12 8:30 AM Import Prices ex-oil Mar
Apr 12 2:00 PM Treasury Budget Mar
Apr 13 7:00 AM MBA Mortgage Index
Apr 13 8:30 AM Retail Sales Mar
Apr 13 8:30 AM Retail Sales ex-auto Mar
Apr 13 10:00 AM Business Inventories Feb
Apr 13 10:30 AM Crude Inventories 04/09 -
Apr 13 2:00 PM Fed's Beige Book Apr
Apr 14 8:30 AM Initial Claims 04/09
Apr 14 8:30 AM Continuing Claims 04/02
Apr 14 8:30 AM PPI Mar
Apr 14 8:30 AM Core PPI Mar
Apr 15 8:30 AM CPI Mar
Apr 15 8:30 AM Core CPI Mar
Apr 15 8:30 AM Empire Manufacturing Apr
Apr 15 9:00 AM Net Long-Term TIC Flows Feb
Apr 15 9:15 AM Industrial Production Mar
Apr 15 9:15 AM Capacity Utilization Mar
Apr 15 9:55 AM Mich Sentiment Apr


Market Outlook April 12, 2011
Structural imbalances continue in the economy. Even Jim Cramer said the market is topping now as said most other MSNBC market advisors last night. QE2 is destroying the incentive for Americans to save and should be ended now before we have 20 years of stagnation.

The world markets are now holding their breath waiting to see if the markets plunge. If the Republicans back down on their miniscule government cuts the world thinks it is doomed to perpetual socialist self indulgent stupidity like we see in the Greek union riots.

The stock market is continuing to test its head and shoulders now. The markets all appear to be topping out. To us it looks like the 47dma is no longer a support level but instead has become the resistance level for a topping trend (head and shoulders) line.

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.

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 more than half of the stock market rise from the 2009 lows is unsupportable and could evaporate. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Asian markets were down last night. China down -0%, Hong Kong down –1.3%, India closed, and Japan down –1.7%.

European markets are down this morning in a range of about –0.8% to –1.5% half way through their day.

US pre-market futures are down about -0.4 % at 7:15 AM EST.