Negative news is pouring in from all corners.

Stocks took another turn for the worse last week with a failed upward breakout of the moving averages. Negative news is pouring in from all corners. A downgrade warning was given for Italian banks and the Greek crisis peaks again this week and August 2 for the USA debt ceiling.

Disappointing earnings reports from both Oracle and Micron have cast a pall over the tech sector as investors realize that bear markets are when the hot stocks get honest and acknowledge losses they have buried in the books. That could result in a whole boatload of reported losses in the near future. Uneasy traders sent the major market indexes solidly lower

40,000 Mexicans died so far at the hands of drug cartel commandos armed after Obama socialists in the Senate authorized their training. The socialists blamed the Mexican slaughter on American individual gun owners after the socialists authorized the training of the commandos who then switched sides and joined the drug cartels. This is an illegal immigrant disaster Obama socialists thought up.

Then Obama thought he could win the presidency by, right after announcing his candidacy, claiming Bush had created a depression. Never before in American history has there been a candidate stupid enough to use the “depression” word to win an election. Then a little later Senator Dodd stupidly announced there was going to be a run on a California bank. Soon Obama- Barney-Rangle-Dodd stupidity had world confidence in the American Banking system unraveling. Obama inherited a minor recession and Obama- Barney-Rangle- Dodd turned it into an economic depression. Obama then provided bail out funds for the banks laundering the Mexican drug money. Obama lied and said American individual gun owners were responsible for the Mexican violence and that Americans should lose their right to bear arms. See this web site for what Obama has in store for America if America does not stop the drug cartel invasion of our Border States and the Obama socialists succeed in legalizing drugs. Beware the torture and murder documentation is very graphic.

Obama should listen to the Clintons:
It’s the economy you are destroying, stupid!

It is Obama’s model communist policies that expand leftist unions, welfare, ignorance, inefficiency, and poverty that expands a leftist voting block to overthrow democratic civil liberties everywhere it was tried, stupid! End those policies stupid!

With all the due respect Obama, as the Clinton’s say, “It’s the economy stupid!”

It’s your leftist tax dodging, GE job exporting business advisor stupid! Get a business advisor who has a brain stupid!
It’s your leftist tax dodging, Treasury Secretary stupid! Get one who has a brain stupid!
It’s your anti-business policy stupid! End it stupid!
It’s your anti-middle class homeowner, and underwater mortgage operative house arrest stupid! End it stupid!
It’s your job killing, pro union anti American, anti Boeing policy stupid! End it stupid!
It’s your pro Jane Fonda, anti-American patriot policy stupid! End it stupid!
It’s your anti-construction policy stupid. End it stupid!
It’s your claimed “Fat, greedy, energy wasting American caused global warming scam” stupid! End it stupid!
It’s your anti-worker, racist pro lazy, pro illegal, pro drug, and pro tax loophole policy stupid! End it stupid!
It’s your welfare state stupid! End it stupid! Make people sweep streets and clean up their garbage for their handouts stupid, like when Clinton made people work for pay in the mid 1990’s.

Trillions of dollars went down the Obama’s toilet bowl using Obama’s trickle up policy. People who by their individual effort produce something people want, those creative people, earn all the wealth naturally rise to the top. Therefore it makes sense that real wealth can only trickle down. Felons, pimps, prostitutes, drug dealers, welfare families, and all people who live from hand to mouth cannot be relied upon to create an economic boom. End it stupid!

World Markets:
Greece delays vote on austerity to Wednesday. A devastating debt default could spark a financial maelstrom around the world at the same time as Obama refuses to cut USA deficits. Thousands of Greek socialists and communists still demonstrate in Athens to stop consideration of austerity measures. Private banks have now been warned to prepare for losses because the Dutch and Germans will no longer baby the communist union’s in Greece.

Illegal Chinese immigration to Europe hit the news this week. Why are so many people fleeing Red China now? Is this a new brain drain or a quiet subversion of free nations by communist agents. It does not look like a brain drain as these are non-professionals and it is very strange that they have access to exit visas. The problem is showing up in Paris.


US Economic Highlights
The economic reports of the last three months have been dismal, and worse than the forecasts of Wall Street.

Past Week
Current Account Balance Q1- $119Billion/month deficit rate is up 5% from last month. Bad
Philadelphia Fed Jun showed a contraction of –7.7 after a 3.9 improvement the previous month. Very bad.
Existing Home Sales fell 4% in May to 4.8 Million hitting a six-month low in spite of the fact this is usually the peak sales season. Very bad.
MBA Mortgage Index 06/17 fell again -5.9%. Very bad
Initial Claims 06/18 up sharply to 429K from 414K …very bad
New Home Sales May 319K down from 323K …very bad
GDP - Third Estimate was Q1 1.9% down from more than 2.2% earlier
GDP Deflator - Third Estimate Q1 showed inflation exceeded GDP growth and real GDP was down 1% to 5% vs. CPI inflation and PPI inflation respectively. Very bad.
http://www.martincapital.com/chart-pgs/Pg_infl.htm

Durable Orders May at 1.9% continue to decline.
Durable Orders -ex Transportation May at 0.6% continue to decline.
http://www.martincapital.com/chart-pgs/Pg_mnord.htm

This week’s coming reports
Jun 27 8:30 AM Personal Income May
Jun 27 8:30 AM Personal Spending May
Jun 27 8:30 AM PCE Prices - Core May
Jun 28 9:00 AM Case-Shiller 20-city Index Apr
Jun 28 10:00 AM Consumer Confidence Jun
Jun 29 7:00 AM MBA Mortgage Index 06/25
Jun 29 10:00 AM Pending Home Sales May
Jun 29 10:30 AM Crude Inventories 06/25
Jun 30 8:30 AM Initial Claims 06/25
Jun 30 8:30 AM Continuing Claims 06/25
Jun 30 9:45 AM Chicago PMI Jun
Jul 1 9:55 AM Michigan Sentiment - Final Jun
Jul 1 10:00 AM ISM Index Jun
Jul 1 10:00 AM Construction Spending May
Jul 1 3:00 PM Auto Sales Jun
Jul 1 3:00 PM Truck Sales

Market Outlook June 27, 2011
U.S. stocks fell sharply Friday on higher volume. The NYSE is within 3 points of its March 15 low and much worse on a market cash flow basis. Apparently workers have stopped putting 401 Plan cash into the hedge funds and are now getting out again. A 0.6% decline now would likely trigger a sell-off as the previous low would be broken as well.

The stock market again confirmed the new bear market trend! On a cash flow (not price basis) it is a lot worse. Looks like the market will now follow the upper limit down in a continuing bear market. See:

http://finance.yahoo.com/q/ta?s=^NYA&t=6m&l=on&z=m&q=l&p=m20%2Ce50%2Ce100&a=m26-12-9&c=

The bear market continues. The VIX is a measure of concern. Low VIX correlates with overconfidence and immanent decline and now fear must rise substantially before the current market sell-off can be considered over. Look how high the VIX has to go now before the bottom is hit in the past! The market typically bottoms with the VIX at 28 or higher. VIX now is only at 21 with 15 being complete investor complacency. It is up only 6 points and has 7 more points to go up. It is only half way to a market bottom.
http://finance.yahoo.com/q/bc?s=%5EVIX&t=6m&l=on&z=m&q=l&c=

Obama and MSNBC/Pravda have been lying about recovery since he got elected. This was Cramer/Lenin/Pravda’s main chart for claiming growth until it showed world stagnation instead. Recovery is one of Obama’s big lies just like his campaign lie that we were in a depression one year before the leftists destroyed American real estate and banks by requiring US banks give mortgages to people of Obama’s ethnic heritage who had no visible source of income to make the mortgage payments. Click on the 5yr chart and see full effect of the slowdown in world dry shipments. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Obama will stop poisoning the world economy with American debt this week. But the FED will not reverse the policy until inflation gets much worse. Obama hates everything America stands for and he would be content to blame his American debt default on President Bush. Obama is a banana republic dictator in need of a banana republic. The future for America under Obama economics is a banana republic.

Asian Stocks were down last night. China up 0.4%, Hong Kong down -0.2%, India up 0.9%, and Taiwan down –14% and Japan down -1.1%.

European markets are up slightly this morning in a range of about 0% to 0.5% half way through their day.

American markets are up 0.4% this morning at 8 AM