The world economy did not double dip which means Europe can grow its way out of their crisis this time.

The world economy did not double dip which means Europe can grow its way out of their crisis this time.

When George Bush was elected we had Steve Jobs, Johnny Cash, and Bob Hope. But with Obama there are no jobs, nor cash nor hope.

Romney now looks like the Republican candidate. Among other things Wall Street Week credits him with cleaning up the Boston harbor. In 2005 he made it clear that he did not support a climate change agreement based on the “leftist environmental theology.” Over 31000 scientists have joined Edward Teller in signing a petition denying there is any credible evidence man-made global warming. What we have is a global crisis of man caused climatoligist fraud. See http://en.wikipedia.org/wiki/Edward_Teller
and
http://www.oism.org/pproject/pproject.htm#41


World markets

China began buying shares of the nation’s four biggest banks lifting their market. Their housing market also appears to be stabilizing.

World optimism that the world economy will not double dip but is in fact growing faster than it has in the previous year means Europe can expect to grow its way out of their crisis this time. The US real estate market and the World bulk market of trade all have been recovering since August when the stock markets fell.

World stocks are under-priced but gold and silver have a long way to fall.


American Economy
Last week summary
ISM Index Sep manufacturing rose 2% to 51.6 from 50.6 in August …good
Construction Spending Aug rose 1.4% after retreating -1.3% in August …good
Auto/truck Sales Sep Chrysler sales climbed 27 percent, GM deliveries rose 20 percent, and Ford sales increased 9 percent the companies said in separate statements. …good
Nonfarm private and government Payrolls Sep 103K up from 0K …good
Nonfarm Private Payrolls Sep 137K up from 17K …good
Unemployment Rate Sep 9.1% unchanged …good
Hourly Earnings Sep up 0.2% after declining -0.1% last month…good
Average Workweek Sep 34.3 up from 34.2- …good
Wholesale Inventories Aug 0.4% down from 0.8% …good

Today
Oct 11 2:00 PM FOMC Minutes Sep. 21

This week
Oct 12 7:00 AM MBA Mortgage Index 10/08
Oct 12 2:00 PM FOMC Minutes Sep. 21
Oct 13 8:30 AM Initial Claims 10/08
Oct 13 8:30 AM Continuing Claims 10/01
Oct 13 8:30 AM Trade Balance Aug
Oct 13 11:00 AM Crude Inventories 10/08
Oct 13 2:00 PM Treasury Budget Sep
Oct 14 8:30 AM Retail Sales Sep
Oct 14 8:30 AM Retail Sales ex-auto Sep
Oct 14 8:30 AM Export Prices ex-ag. Sep
Oct 14 8:30 AM Import Prices ex-oil Sep
Oct 14 9:55 AM Mich Sentiment Oct
Oct 14 10:00 AM Business Inventories Aug

Market Outlook October 11 2011
Short selling, climbed to 11.6 percent of stock last month from 9.5 percent in July, the biggest increase since at least 2006. But the Dow rose 2.97% yesterday. However the rise was on 19% lower volume indicating a short squeeze has not even started yet!

Stocks could have to rise an additional 5% from here to trigger a short squeeze, but if they do the market could be up more than 15% from the low by Christmas. Stocks are such a bargain; China is investing excess cash in their own market and is buying international companies at bargain prices. American corporations remain sitting on record cash levels. Soon they will all jump back into the market to get a piece of these bargain prices. However, we do not believe a new high will be hit this year… but most market losses could be recovered.

We still expect a normal advance of at least 50% of the total recent decline and possibly as much as 90% recovery. But then it will be time to lighten up on equities again. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=2y&l=on&z=l&q=l&p=e50%2Ce100&a=&c=

We believe America will not have a double dip recession. Since August, international trade continues to recover. See 1yr chart at:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND


Stock market update:
Asian Stocks were up sharply Monday and again last night. China up 3.7%, Hong Kong up 2.4%, India down 0.1%, Seoul up 1.6%, and Japan up 2%.

European markets were up sharply Monday and are down slightly today in a range -0.4% to -1% half way through their day.

American market futures were up 2.9% yesterday and are down about -0.4% at 7:30AM EST. US market futures rarely have any predictive correlation.