A short squeeze is forming. Short sellers are in a panic and are trying to create fear. But some are beginning to cover themselves and that plus cor

A gay-advocacy group”OutServe” launched the magazine and has already produced two editions. The group says its September edition will be available for free to reeducate military members at select Army and Air Force bases.

A California solar-panel manufacturer that President Barrack Obama gave a $535 million loan guarantee to and claimed was a beneficiary of his administration's economic policies and “green technology” is laying off 1,100 workers and filing for bankruptcy.

Solyndra LLC of Fremont, Calif., had become the poster child for Obama’s funneling money to his people under the guise of investment in green technology. The president visited the company in May of last year and noted that Solyndra would hire another 1,000 workers to manufacture solar panels. Only Obama could be so stupid or so corrupt.

But hard times have hit the nation's solar industry-duuhhhhh. If Obama had half of Rush Limbaugh’s brain he would have known hard times hit the solar panel industry under Jimmy Carter when the subsidies stopped. Solyndra is just the third solar company to seek bankruptcy protection this month.

Republicans have been looking into the Solyndra loan for months. The whole Obama “Stimulation Fund” was nothing but a handout to financial backers of Obama socialism and promises to hire Obama’s “chosen people” who don’t like to work like most Americans do. The House Energy and Commerce Committee subpoenaed documents relating to the loan from the White House Office of Management and Budget. GOP Reps. Fred Upton of Michigan and Cliff Stearns of Florida issued a joint statement on Wednesday essentially saying it was clear that Solyndra was a fraudulent stimulus package deal from the start just like the millions for ACORN and other criminal socialist organizations. "We smelled a rat from the onset," Upton and Stearns said. They said they would continue to seek documents that would provide more details about the Solyndra loan. "Solyndra is just the latest casualty of the Obama administration's failed stimulus, emblematic of an economic policy that has not worked and will not work.

When Obama recently toured the company's facilities, he said the 100% loss, “was important because more clean energy would benefit the environment, the economy and national security.” "The future is here," Obama said during his visit. "we are poised to generate countless new jobs, good-paying, middle-class jobs, right here in the United States of America." Obama wants everyone to know that the Bush Administration is at fault because the Solynda's filed for the guarantee in January just before Obama was sworn in so Obama said he had to accept it because Bush told him to. Brian Harrison, Solynda's president and CEO, said ripping off taxpayers to guarantee a new loan was now impossible with the Tea Party watching, so raising capital became impossible. By Obama’s calculations the Tea Party cost Solynda's 1000 jobs. The failure of “Solar Power” has nothing to do with it lacking a market… it is totally the fault of evil bankers and the previous Bush administration and of course the Tea Party.

Another solar company, Spectrawatt Inc. of Hopewell Junction, N.Y., filed for Chapter 11 bankruptcy on Aug. 19. Its CEO said in the filing that it needed "considerable government and financial support." Spectrawatt's filing came four days after Evergreen Solar Inc. of Marlboro, Mass., filed for Chapter 11 bankruptcy.

It appears the shorts miscalculated and are starting to cover themselves as corporations see this rare opportunity to buy back their stock at a substantial discount. Corporate purchases could wipe out short sellers. Uncovered short sellers could face 500% losses to unlimited losses. Warren Buffett said he would/will buy $5Billion in Bank of America yesterday and the stock rose 10% on thenews. What happens when he actually does buy the BAC stock? The multiplier effect could be 20.

Short positions are at a record high right now and as soon as volume declines again they will get whipped out in the rally. When that happens the covering of short positions will become a significant boost to buying volume. Many companies are likely to buy back their 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. Warren Buffet said he would invest $5Billion in Bank of America. We are just seeing the corporate money ready to flow into the market and wipe out all the short sellers thus starting another rally. As prices fall it becomes more possible for corporations to take their firms private. Then short sellers could go –500% in the hole.

While the U.S. rate of expansion has slowed slightly, the Chicago Fed’s index of 85 economic indicators improved in July for a third month on gains in production.

We need to stop the handouts to Obama’s chosen people because when all the stupid and lazy people in Greece, America, and the rest of the world are given no free ticket and must actually work for a living like the rest of us, we can get out of the debt crisis because the welfare state is the debt crisis.

World Markets:
Germany shows strength in family owned businesses that are taking the lead snatching up opportunities at bargain prices and growing their employment.

Russian socialists use police power to beat the last pound of flesh off creative and hard working Russians. Russian officers armed with assault rifles Wednesday raided the Moscow offices of the British Petroleum, carrying out a type of ritual armed search of the white-collar premises. BP’s company has had such problems here for years, its share price often nudges up or down in response to socialist economic police raids or the arrests of employees. Separately, a Russian socialist gangster group sued BP in the Siberian court for damages alleging that BP executives serving on the board of directors of the TNK-BP subsidiary violated their fiduciary obligation to pay gangsters protection money. A similar lawsuit, also filed in a remote Siberian court, in Omsk, crippled the Norwegian telecommunications company Telenor’s business in Russia for years, ending in a large payoff settlement last year. Sometimes, police wielding guns force analysts and economists onto the floors of their offices destroying any sense that Moscow offers law, order, much less justice. Heavy-handed Putin gangster tactics are the norm. In February, masked, armed Putin gangsters raided Deutsche Bank’s main office in Moscow, looking for documents related to a commercial mortgage of a Putin friend. In November, police armed with automatic weapons raided a bank belonging to the billionaire Aleksander Y. Lebedev, of the national airline Aeroflot. Mr. Lebedev said he was sitting in his office when men in commando outfits wearing masks burst in, looking for documents. Another American businessman had all his corporation assets stolen and his Russian lawyer was arrested and tortured to death for taking his case to court. People throughout Eastern Europe complain about the Russian gangsters who still live in their villages and control the streets at night. They are protected by Putin’s gangsters who would invade if the gangsters were deported or imprisoned.

Japan to invest $2Billion in consolidation of display technology manufacturing in Japan.

Memory manufacturers are seeing a price collapse across the world.


The world rally is now in full motion.
China
http://finance.yahoo.com/echarts?s=^SSMI+Interactive#chart1:symbol=^ssmi;range=3m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Germany
http://finance.yahoo.com/echarts?s=^GDAXI+Interactive#chart2:symbol=^gdaxi;range=3m;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#chart1:symbol=^ssmi;range=3m;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#chart1:symbol=^bvsp;range=3m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined


American Economy-
Last week
Personal Income Jul up 0.3% better than last months 0.1%
Personal Spending Jul up 0.8% much better than last months -0.2%
PCE Prices - Core Jul 0.2% not deflationary like last months 0.1%
Pending Home Sales Jun -1.3% not good last months 2.4%
Case-Shiller 20-city Index Jun -4.52% like last months -4.51%
Consumer Confidence Aug 44.5 far down from 59.5 (an outlier or cross-over??)
http://www.martincapital.com/index.php?page=graph&view=consumer_confidence
FED minutes support continued easing.

Yesterday
MBA Mortgage application Index 08/27 -9.6% vs -2.4% last month
Challenger Job Cuts Aug 47.0% vs 59.4%
ADP Employment Change Aug 91K down from 114K
Chicago PMI Aug 56.5 down from 58.8
Factory Orders Jul 2.4% up a lot from -0.8%
Crude Inventories 08/27 5.281M up from -2.213M

This Week
Sep 1 8:30 AM Initial Claims 08/27
Sep 1 8:30 AM Continuing Claims 08/20
Sep 1 8:30 AM Productivity-Rev. Q2
Sep 1 8:30 AM Unit Labor Costs - Rev. Q2
Sep 1 10:00 AM ISM Index Aug
Sep 1 10:00 AM Construction Spending Jul
Sep 1 3:00 PM Auto Sales Sep - NA NA 3.93M
Sep 1 3:00 PM Truck Sales Sep - NA NA 5.56M –

Sep 2 8:30 AM Nonfarm Payrolls Aug - 75K 73K 117K -
Sep 2 8:30 AM Nonfarm Private Payrolls Aug - 100K 110K 154K -
Sep 2 8:30 AM Unemployment Rate Aug - 9.2% 9.1% 9.1% -
Sep 2 8:30 AM Hourly Earnings Aug - 0.2% 0.2% 0.4% -
Sep 2 8:30 AM Average Workweek Aug

Market Outlook September 1 2011
A short squeeze is forming. Short sellers are in a panic and are trying to create fear. But some are beginning to cover themselves and that plus corporation stock buy-backs are underlying the market rally.

Structural issues have stalled world growth. A welfare dependent voting block now elects socialists and communists across the free world. Governments became too large in order to manage welfare, social programs, and government worker unions. Social Security has been diverted to welfare. Government investment in business investment has been diverted to welfare via affirmative action. Government in Freddie and Fannie has transferred $Trillions via affirmative action to people with no visible work ethic or means of personal support. We are an Obama welfare state and he will suggest more government hiring. The only program of government jobs that does work in the short run is to put long term unemployed and welfare recipients into to work programs sweeping streets, cutting grass, cleaning rivers and forests, shoveling snow etc as was done under Clinton for welfare reform.

The market rally should be somewhere between 50% and 90% of the way to the recent spring highs. There may be some consolidation today after Bernacke speaks. We expect a short squeeze to begin as investor volume dries up and corporations find buying their own stock or even other corporations is too good to pass up. The short squeeze will start on it own and then others will jump in so as not to miss the opportunity.

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=5y&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 3yr and 5yr charts at:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stocks were up again last night. China down 0.4%, Hong Kong up 0.3%, India up 1.6%, and Japan up 1.2%.

European markets are down today -0.5% to -1.7% half way through their day.

American markets futures are up about 0.8% at 7 AM EST

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 new taxes loom. Remember if the money multiplier effect is 20:1(the money changes hands 20 times) that $500billion becomes $10Trillion so it would only take 10% of the corporations to buy back and to put $1trillion into the stock market