In the long run liberals make it pay to be stupid. Energy blackouts give Obama a warm feeling

Obama is now the first president to have two major crippling blackouts in his term as president. And they both occurred in the last three months. This year he has instituted the requirement that special government emergency committees be set up and filed with democrat controlled states in order to get emergency crews into Northeast townships. If the town does not file the necessary government they get no private utility company crews to restore power. The most conservative towns got power within four days. The most liberal communities were screaming yesterday after a week because they can’t figure our how to form an emergency committee and fill out the paperwork. So last night the Democrat Governors waved the requirement. Now just competent town governments need to file to get the repair crews. In the long run liberals make it pay to be stupid. Power is almost on again in New England. The new government paperwork gives liberals a new excuse for extended energy blackouts. Energy blackouts give Obama a warm feeling because in the Obama homelands of Africa and the Far East they occur every day. American energy blackouts are part of Obama’s effort to bring equality to the world.

Former NJ Democrat Governor Jon Corzine's resigned from MF Global after making 3:1 leveraged bets on the European debt problem and bankrupting the company he ran. Being a big socialist like George Soros, Jon Corzine expected another bailout not a German haircut

World markets
Greece should be ejected from the EU. The USA banks need to pull investments out of Greece, Spain, Iceland, and Italy until they cut government spending.

China bounced. http://finance.yahoo.com/echarts?s=000001.SS+Interactive#chart1:symbol=000001.ss;range=5y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Germany rises: Choose 2 or 5 years
http://finance.yahoo.com/echarts?s=%5EGDAXI+Interactive#chart1:symbol=^gdaxi;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

The Swiss government and central bank has a target for the Swiss franc to halt its rise. Choose 2 or 5 years http://finance.yahoo.com/echarts?s=%5ESSMI+Interactive#chart1:symbol=^ssmi;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Emerging markets show resiliency.
http://finance.yahoo.com/echarts?s=^BVSP+Interactive#chart1:symbol=^bvsp;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined


American Economy

New Home Sales Sep 313K improved 6% from 295K very good

Last week the good
Challenger Job Cuts Oct +12.6% down from +211.5% -
Initial Claims 10/29 397K down from 402K
Productivity-Prel Q3 3.1% up from -0.7%
Unit Labor Costs -Prel Q3 -2.4% down from 3.3%
Factory Orders Sep 0.3% up from -0.2%

Last week the bad
Chicago PMI Oct 58.4 down from 60.4
Construction Spending Sep 0.2% down from 1.4%
ISM Index Oct 50.8 down from 51.6
MBA Mortgage Index 10/29 0.2% down from 4.9%
ADP Employment Change Oct 110K up from 91K
Crude Inventories 10/29 1.826M down from 4.735M
Continuing Claims 10/22 3683K up from 3645K
ISM Services Oct 52.9 down 53.0
Nonfarm Payrolls Oct 80K down 103K
Nonfarm Private Payrolls Oct 104K down 137K

Last week the indifferent
FOMC Rate Decision Nov 0.25% no change
Unemployment Rate Oct 9.0% makes no sense 9.1%
Hourly Earnings Oct 0.2% constant 0.2%
Average Workweek Oct 34.3 no change 34.3

This Week
Nov 7 3:00 PM Consumer Credit Sep
Nov 9 7:00 AM MBA Mortgage Index 11/05
Nov 9 10:00 AM Wholesale Inventories Sep
Nov 9 10:30 AM Crude Inventories 11/05
Nov 10 8:30 AM Initial Claims 11/05
Nov 10 8:30 AM Continuing Claims 10/29
Nov 10 8:30 AM Export Prices ex-ag. Oct
Nov 10 8:30 AM Import Prices ex-oil Oct
Nov 10 8:30 AM Trade Balance Sep
Nov 10 2:00 PM Treasury Budget Oct
Nov 11 9:55 AM Mich Sentiment Nov

Market Outlook November 7 2011
A 90% price recovery relative to the 2011 market high is now possible by the end of January. Volume action still good as it increases on the up side.

The high VIX says investor’s fears are high. That correlates more with a continuing bull market because complacency has not set in. We are now climbing the well-known bull market wall of fear. There is still just not much short seller fear at this point. We have not had the shorts squeezed out of the market yet. Look how low the VIX has to go before the market top is hit! A level as low as 20 would indicate complacency and the end of the bull market.
http://finance.yahoo.com/q/bc?s=%5EVIX&t=6m&l=on&z=m&q=l&c=

The NYSE is already half 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.

Since September, international trade has fallen. China must be hurting badly. 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 down last night. China down –0.7%, Hong Kong down –0.8%, India up 0.4%, Taiwan up 0.2% and Japan down –0.4%.

European markets are erratic today in a range +0.9% to -0.9 % half way through their day.

American market futures are down about –0.4% at 7 AM EST.