If Obama only had a brain! When Obama sees the wizard and gets his brain, he will also see the light and return to Kansas after wasting $trillions on

If Obama only had a brain! When Obama sees the wizard and gets his brain, he will also see the light and return to Kansas after wasting $trillions on his hair-brained economic fantasies.

Many people should not be in any of the equities markets (stocks, bonds, options, futures, gold etc) and are being slaughtered by volatility in all of them. Recent traders in futures and options have been destroyed by hedge funds selling short.

In 2008 amateurs in stocks were destroyed. Many were enticed into bonds that went nowhere thinking they were secure. Most missed the 2009 rally and got back in the stock market before May 2010 and then lost their shirts. Others got in early this year and lost their shirts the last few weeks. But the ones being hurt now are the ones in highly volatile options and futures that thought they were sophisticated but have been forced to sell with margin calls. Capitulation is a misnomer. These people are being sold out by their brokerage firms because they were on margin or lose 20X on futures volatility.

Many hedge funds avoided damage and actually created the capitulation. They not only sold everything quickly but went short and made money as the market collapsed and used that money to short even more stocks. That is what caused the sharp collapse. They must soon cover their shorts. The amateurs are buying gold now. Once the rally begins the most trodden down shorted stocks will spike up rapidly. Amateurs who have been shorting will then get wiped out. Later the gold buyers will lose most of their money. We expect gold will drop to below $800/oz when the European crisis is resolved and will stay there for at least ten years. Bonds will become big losers as inflation causes interest rates to rise.

Obama is a re-incarnation of a mentally challenged version of miserable Jimmy Carter. America’s only real long-term hope is that Obamacare is declared unconstitutional. Obamacare will completely destroy the American work ethic and the American economic engine powering the world if it is implemented. Working Americans will lose all hope if Obamacare for his chosen people (his leftist and indigent supporters) is instituted. It will be run by his chosen people (40 million who already get free emergency service), for his chosen people (just as welfare is run), and will bankrupt America. We need to undo all the legislation that the democrat/socialist Congress admittedly passed without even reading what they passed. Former KGP head and current Russian dictator Vladimir Putin warned the world last week that Americans are already parasites living beyond their means. He would be right except he includes the ones who work for a living.

If TXN is going to pick up so much new business as rumored, why have insiders at TXN recently sold 70% of their shares?

World Markets:
Spain has finally terminated their ludicrous green energy movement that stagnated their economy with subsidies for green energy that costs 4X current energy. All those people have now been laid off and their businesses are bankrupt. When Obama sees the wizard and gets a brain, he will also see the light and return to Kansas after wasting $trillions on his hairbrained economic fantasies. But bad will go to worse as Spain’s hair-brain communist People’s Party threaten to oust the Socialist Party in new November elections. Communist authoritarian Alfredo Pérez Rubalcaba slowly takes over from Zapatero in Spain. This alone could trigger a no-confidence vote by Spain’s bondholders as they flee Spanish investments.

London is out of control with violent looting, arson and murder as people that have a work ethic have to defend themselves with pots and pans against knives, fire, and stones because the socialists took away their right to own guns needed to protect themselves.

The US may not have a double dip recession but it certainly will be trimming consumption and expenses for the rest of this year. That should be felt by the emerging markets just as though the American economy had stopped.

Emerging markets plummeting to 2009 levels. All have had crossovers of the 100DMA and the 200DMA. Brazil http://finance.yahoo.com/q/ta?s=%5EBVSP&t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=

Asian markets ready to plummet. China
http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=&s=^SSEC
India
http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=&s=^BSESN

Europe’s Swiss market is now plummeting down to 2009 levels. This is the most amazing decline because the Swiss have such vulnerable banks who have invested in government securities.
http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=&s=^SSMI
France
http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=&s=^FCHI
Spain
http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=&s=^SMSI
Belgium
http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=&s=^BFX
Italy
http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=&s=^ATX

We believe today we will see the end of the panic that the hedge funds have created shorting stocks worldwide. But Europe and Russia are way ahead of the USA in debt. The USSR KGB’s Putin is a clown calling Americans parasites.

American Economy-
Last Week
MBA Mortgage Index 07/30 up 7.1% compared to -5% last month. Very good for housing
Challenger Job Cuts Jul 59.4% compared to 5.2% last month. Obama job losses
ADP Employment Change Jul 114K compared to 157K. Obama job stagnation
Factory Orders Jun -0.8% compared to 0.8%. Obama economic stagnation
ISM Services Jul 52. compared to 53.3 Obama loss of service jobs
Crude Inventories 07/30 0.950M compared to 2.296M Obama energy shortages.
Initial Claims 07/30 400K increased from 398K reported last week.
Continuing Claims 07/23 3730K increased from 3703K reported last week.

Today
Aug 9 8:30 AM Productivity
Aug 9 8:30 AM Unit Labor Costs Q2
Aug 9 2:15 PM FOMC Rate Decision Aug

This Week
Aug 10 7:00 AM MBA Mortgage Index 08/06
Aug 10 10:00 AM Wholesale Inventories Jun
Aug 10 10:30 AM Crude Inventories 08/06
Aug 10 2:00 PM Treasury Budget Jul
Aug 11 8:30 AM Initial Claims 08/06
Aug 11 8:30 AM Continuing Claims 7/30
Aug 11 8:30 AM Trade Balance Jun
Aug 12 8:30 AM Retail Sales Jul - 1.0%
Aug 12 8:30 AM Retail Sales ex-auto Jul
Aug 12 9:55 AM Mich Sentiment Aug
Aug 12 10:00 AM Business Inventories Jun

Market Outlook August 9, 2011

While it may be too late for Europe and Asia, American markets probably will have yet another rally starting soon that could last part of a year before a bear market risk evident. The DOW and the S&P say we have only had a correction. The NYSE says we have had a capitulation spike for two days now of the magnitude greater than May 6, 2010. We recovered well from May 6, 2010. But countries like Russia, Spain, and Greece that are socialist and high in debt have little left to steal from their neighbors.

The wise expect a market advance soon. Therefore the wise were buying stock of good companies that have been driven down in price. An immanent rally could then easily recover half the recent losses. But this is not the time for the faint hearted to invest because many technical sell signals have been issued. The future of the world is uncertain under Obama leadership vacuum. We expect a gain and another drop and another gain before the end of the year. There may be very little net gain this year unless Obamacare is declared unconstitutional. Obamacare will kill the American economy if it is implemented. American Medicare is bankrupt and entitling 40 million more people who have never supported themselves and who already get free emergency service and abortions, to get free drugs, prescribed self-esteem breast implants, and hip replacements, will bankrupt America.

You can see the VIX finally hit and exceeded the panic level. It normally peaks at 30 to 40 before a crisis is over and it set a 52-week high of 48 yesterday. So the VIX implies this decline is essentially over. However the cash flow indicators say we are likely to remain very volatile going forward as cash swings in and out. This market is similar to the flat-lined market of the 1970’s before Ronald Reagan introduced supply side economics and terminated the ludicrous green energy movement that stagnated the American economy back then.
http://finance.yahoo.com/q/bc?s=^VIX&t=1y&l=on&z=m&q=l&c=

The May 2011 low was shattered yesterday and that is a confirmation of a head and shoulder breakdown. If that is the case there could be a continued sharp sell off. We are so low now the risk of a new low is getting small. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=1y&l=on&z=l&q=l&p=e50%2Ce100&a=&c=

Recovery last year was one of Obama’s big lies as he continues to divide America. But now he does not talk about his great accomplishments very much. Click on the 5yr chart and see full effect of the slowdown in world dry shipments. Now most of his supporters are quietly admitting Obama has done nothing as president to help the economy. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Last Friday
Asian Stocks are bottoming. China down –0.03%, Hong Kong down –5.7%, India down –0.8%, Taiwan down –0.8%, and Japan down –1.7%.

European markets were down Monday and bottoming today by about +0.8% to -2.4%.

American markets futures are up about 2% at 7:30 AM EST

It appears we passed the capitulation point of the current decline. Still we expect little net gain this year and next unless Obamacare is declared unconstitutional.