Inflating energy costs in a recession is the most stupid of all Obama economic policies.

Obama’s stimulation package is working well stimulating political campaign contributions from the liberals Obama helped put at the head of his solutions for American energy.
World markets
France and Germany now agree Greece should have never been admitted to the EU but will attempt to help Greece adjust away from socialism and become more competitive.

American Economy
Yesterday we said “The end of the EU crisis means there is a good chance American growth will rise to between 2% and 2.5% this year.” Later it was announced that total output grew at an estimated annual rate of 2.5 percent from July to September, almost double the 1.3 percent rate in the second quarter. That definitely is no double dip so we are flat because our growth is almost entirely just the effect of inflation.

If we can purge all the corrupt socialist Indians who have infiltrated the American economy and industry and are now illegally manipulating world financial markets from inside the USA and who are donating (along with the communist Chinese) to the campaigns of American corrupt moron liberals… then we can get our economy back in hands of Americans who think rationally.

If American oil can stabilize around $95 a barrel US profits will rise and natural gas can grow and be profitable and keep energy inflation from damaging the economy the way moron liberals have been killing jobs in America with non profitable socialist ideas. Inflating energy costs is the most stupid of all Obama policies.

Week’s Summary
Case-Shiller 20-city Index Aug -3.80% not much better than last months -4.11%
Consumer Confidence Oct 39.8 terrible down from 45.4 due to Obama. Americans now agree Obama is a moron liberal and are depressed by all the corruption.
FHFA Housing Price Index Aug -0.1% worse than last months 0.8% improvement but could be data scatter
MBA Mortgage Index 10/22 improved to 4.9% from -14.9% very good
Durable Orders Sep -0.8% worse due to lower car sales from -0.1% auto industry socialism does not work
Durable Orders -ex Transportation Sep 1.7% -0.1% was just a little worse 0.0% not terrible
New Home Sales Sep 313K improved 6% from 295K very good
Crude Inventories 10/22 4.735M a good glut of oil compared to last week’s -4.729M very good for homeowners

Yesterday
Initial Claims 10/22 402K down from 403K still not good enough
Continuing Claims 10/15 3645K down from 3719K
GDP-Adv. Q3 2.5% double the last quarter’s 1.3%
GDP Deflator Q3 2.5% same 2.5% means the GDP advance was entirely inflation, still not good enough
Pending Home Sales Sep -4.6% down from -1.2% is a seasonal slowdown

This Week
Oct 28 8:30 AM Personal Income Sep
Oct 28 8:30 AM Personal Spending Sep
Oct 28 8:30 AM PCE Prices - Core Sep
Oct 28 8:30 AM Employment Cost Index Q3
Oct 28 9:55 AM Michigan Sentiment - Final

Market Outlook October 28 2011
A 90% price recovery relative to the 2011 market high is now possible within two to three months. Volume increased 50% on the rally yesterday.

The NYSE is already 54% of the way back to its July, 22,2011 level. That meets our prediction that, “We still expect a normal advance of at least 50% of the total recent decline and possibly as much as 90% recovery.”
See:
http://finance.yahoo.com/echarts?s=^NYA+Interactive#chart3:symbol=^nya;range=5y;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

The market broke the 200dma and triggered a buy signal and surge as anticipated.

But Obama still is preventing Congress from cutting government waste. The way American industry has been able to survive has been to cut waste and not reward incompetence and laziness. Government needs to cut government pensions and health benefits and require government employees live on Social Security and the same health plans as other Americans. Starting in April, the banks began net loaning of money to small corporations. Since September, international trade may have flattened. We need to watch trade to see if the recovery takes hold again. See 1yr chart. You may need to cut and paste this in:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stocks were up last night. China up 1.6%, Hong Kong up 1.6%, India up 3%, Taiwan up 0.8% and Japan up 1.4%.

European markets are down today in a range +0.2% to -1.1 % half way through their day.

American market futures are down about –0.6% at 7 AM EST. We predict a great day today.