While the U.S. expansion has slowed, the Chicago Fed’s index of 85 economic indicators improved in July for a third month on gains in production. That means there are no signs of a recession brewing. Federal Reserve Chairman Ben S. Bernanke tomorrow has little choice but to disappoint stock investors betting on a commitment to step up stimulus. Consumer prices are rising and the U.S. economy is still growing. The threat of deflation has subsided, with the Labor Department’s consumer price index, minus food and energy, rising 1.8 percent for the 12 months ending July. The greatest support for the stock market is all the corporate cash on the sidelines that corporations plan to use to purchase their own stock at current bargain prices. Businesses have more confidence in the stock market than they have in stupid barking Obama’s chance of stimulating job creation. Even before the recent market plunge, Lowe’s Cos., the second-largest U.S. home-improvement retailer, said it planned to buy back $5 billion of its own stock over the next two-to-three years. They should hurry up and then overtake Home Depot.
Steve Jobs resigned from Apple due to health reasons. That will have a long-term negative impact on Apple, which is valued more than about 25% of the world.
Jimmy Cramer said stocks were undervalued 12% before they fell 12% to 25% depending what you owned. Once again the people who just cannot stay cool and calm are being slaughtered.
Wan Gang is the current minister of science and technology in China. Wan Gang is the first minister who is no a member of Communist Party of China. He is also the chairman of China Zhi Gong Party (Public Interest Party). There are eight parties that generally follow the Communist party but are not usually given much authority. This party has many former American members who returned to China. The party was formed in San Francisco to originally support democratic Nationalist China
Obama is barking at the banks hard now for all the “liar loan” mortgages he made them accept from his “chosen people.” He forced Bank of America to buy Merrill Lynch and Country Wide and then destroyed Ken Lewis for living to talk about it. Obama knows that Fannie and Freddie were bankrupted by his “liar loans” but instead of admitting his (and Barney Franks) biggest ever shakedown of American taxpayers Obama instead prolongs Fannie and Freddie's dissolution causing bank stagnation and an inability to fund a recovery. As Obama waits... his “chosen people” continue to strip the vacant homes of their copper plumbing and wiring essentially gutting the houses so they become condemned and worthless. Obama is not letting the housing crisis get resolved because the "liar loan" losses show just how stupid his socialist ideas are and have been. Barking Obama’s socialism is government of the lazy, stupid, and pot heads, by the lazy, stupid, and pot heads, for the lazy, stupid, and pot heads.
Obama had the Secret Service buy two new $1.1 million Canadian buses just for his three-day slumming trip to see the little people. Obama flew and his buses flew between city stops and then he toured in his bus to prove he uses mass transit like Joe the plumber and saves taxpayer money. Obama is so full of crap. But those buses are so heavy they have to be loaded up on one or more C-17s. Then they are flown to the destination ahead of AirForce-1 and this is repeated for every campaign stop. Obama went to the Midwest to lecture the 'little people' on how they need to live within their means and cutback! Remember when very recently Obama told that family man to GO BUY A $60,000 HYBRID VAN when he said he couldn’t afford to fill up his truck??? Obama's 'carbon footprint' must be about as large as Chicago’s by now. After all that slumming with Americans Obama and his wife then took separate airplanes to his resort at Martha’s Vineyard where it takes 50 secret service cars to follow him around. Eisenhower had four cars in his motorcade. Eisenhower did not worry because he was a popular president.
http://www.snopes.com/politics/obama/bus.asp
Many companies are likely to buy back shares at a time when price-to-earnings ratios are low, providing a trigger for a rally of 10% or half the recent 20% decline. We plan to sell when we get a sell signal. It is entirely possible that the rally could reach the recent highs depending on how fast U.S. companies buy back shares since they have high cash ratios and buy backs enormously increase the rise in earnings per share.
World Markets:
Gold plunged below $1800; a dramatic reversal from a record-setting run that bred complacency about the yellow metal's risks. Gold dropped almost 6% yesterday alone. Silver currently is about 80% overpriced. Bonds, especially higher rate bonds your brokers have been pushing people into during the past year are plunging in value faster than seen since Lehman failed.
Asian Stocks Climb as Exports Rise
Socialist and economists from Pacific Investment Management to the communists at Harvard say ensuring the euro’s existence may require members to leave the 17-nation currency region. So far the rescue bill includes $524 billion in official loans to Greece, Portugal and Ireland, the creation of a 440-billion euro rescue fund and 96 billion euros in bond buying by the European Central Bank.
World markets may have set lows for now and in some cases they set double bottoms.
China
http://finance.yahoo.com/echarts?s=000001.SS+Interactive#chart2:symbol=000001.ss;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
Germany
http://finance.yahoo.com/echarts?s=%5EGDAXI+Interactive#chart1:symbol=^gdaxi;range=1m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
The Swiss government and central bank talks about a possible target for the Swiss franc to halt its gains has failed and the Swiss franc is rising again. The Swiss market has not yet double bottomed and has a way to go.
http://finance.yahoo.com/echarts?s=^SSMI+Interactive#chart2:symbol=^ssmi;range=1m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
Emerging markets also will fall further before they double bottom.
http://finance.yahoo.com/echarts?s=^BVSP+Interactive#symbol=%5EBVSP;range=
http://finance.yahoo.com/echarts?s=000001.SS+Interactive#chart1:symbol=000001.ss;range=1m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
American Economy-
Last week
Existing Home Sales Jul 4.67M flat from 4.77M. bottomed out
Leading Indicators Jul 0.5% up from 0.3%. very good
This week:
New Home Sales Jul 298K down from 312K reported in June
Today
MBA Mortgage application Index 08/20 -2.4% after jumping +4.1% last month.
Durable Orders Jul up 4.0% after bad news -1.9% in June.
Durable Orders -ex Transportation Jul up 0.7% on top of a good up 0.4% last month
FHFA Housing Price Index Jun up 0.9% after increasing 0.4% last month…great news for housing stocks.
Crude Inventories 08/20 dropped -2.213M which means demand is high.
This Week
Aug 25 8:30 AM Initial Claims 08/20
Aug 25 8:30 AM Continuing Claims 08/13
Aug 26 8:30 AM GDP - Second Estimate Q2
Aug 26 8:30 AM GDP Deflator - Second Estimate Q2
Aug 26 9:55 AM Michigan Sentiment - Final
Market Outlook August 25, 2011
The market rally should be somewhere between 50% and 90% of the way to the recent spring highs. After the run-up for two days there may be some consolidation today, but don’t bet on it.
We expect the VIX to continue to decline as the panic of smaller investors subsides similar to after the flash crash of May 6, 2010
. http://finance.yahoo.com/q/bc?s=^VIX&t=2y&l=on&z=m&q=l&c=
We expect a normal advance now of up to at least 50% of the total decline. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=6m&l=on&z=l&q=l&p=e50%2Ce100&a=&c=
Economic recovery the past two years was one of Obama’s big lies as he continued to divide Americans, destroyed the American economy with socialism and corruption, and barked at Congress and the increasing numbers of disappointed voters. But could the bulk shipments finally be getting ready to break out? See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Stock market update:
Asian Stocks were up last night. China up 2.9%, Hong Kong up 1.5%, India down 0.9%, and Japan up 1.5%.
European markets are up today by about 0% to Italy’s 3.2% half way through their day.
American markets futures are flat at about -0.1% at 7:30 AM EST
We expect the stock market run-up could be fast now with corporation buying back their own stock at least 50% of the way, possibly to 90% of the recent highs. Corporations have over $500 billion in cash to invest and it does not look like they will invest in jobs as long as stupid barking Obama’s socialized medicine and new stupid barking Obama taxes loom.
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