National security as well as economic advisers to the Socialist regime have close ties to defense, homeland security, energy companies and as

National security as well as economic advisers to the Socialist regime have close ties to defense, homeland security, energy companies and have received trillions in federal contracts since 2004. The worst abuser is GE with who’s CEO advises Obama on jobs creation as well. But that is not all. George Soros is also one of Obama’s most sought after advisors. Obama even appointed a Czar who said her favorite leader is Mao, the communist butcher of China! Obama appoints Czars so that he does not have to expose his Marxists to Senate scrutiny. The original Czars were totalitarian dictators who made Marxists look like good fairies.

We expect retail sales to be up more than 8% as the weather helps improve the mood and there is a year-end surge. We then expect a stock market surge in January as the good news is reported.

Netflix CEO Hastings’ stock options were cut by 50%. Aren’t you glad we did not recommend the stock when Jim Cramer was saying to buy it at the high and Barrons wrote it up for a buy as well. You know you can just go to your neighborhood library and borrow the DVDs free of charge for a week. It is amazing that Netflix can even stay in business.

Gold declined for the third time in four days on signs of a strengthening US job market and a drop in holdings astute fund investors. We have warned for over a year that a depression is still a greater threat than inflation. We just cannot know how real the recovery has been because Marxists manufacture their economic data.

The Holden Justice Department on Wednesday announced the largest residential lending settlement in history, saying that Bank of America had agreed to pay $335 million to settle administration allegations against Countrywide Financial. More than 10,000 minority borrowers chose low interest subprime mortgages with higher fees because they wanted to flip their property in three years while other borrowers with similar credit profiles who were not tempted to make a “quick buck” flip and requested longer term higher interest mortgages with lower fees. The racist-socialists now consider it a crime to allow people to chose the financing they want. Everyone had the same choice and there are many lenders to choose from.

World markets
It is beginning to look like Greece and Portugal will not survive as EU members using tied to the EURO but they could still be members as Britain is.

The IFW and RWI institutes both released predictions showing similar 2012 economic growth for Germany and there will be no debt crisis or recession in Germany in 2012. The Munich-based Ifo institute’s business climate index, based on a survey of 7,000 executives, today climbed to 107.2 from 106.6 in November. American economists had predicted a decline. Business confidence in America is also increasing for a gradual economic advance in 2012.

Since the European Central Bank offered unlimited three-year loans to the region’s banks it has stabilized the European situation and boosting demand for higher-yielding assets. Spanish government notes and Italian bonds are gaining.

With such corruption and espionage even among “friendly” Asian nations, investments in Asia have a 1998 type disaster in 2012.

China’s stock market is also now breaking down below the lows of July 2010. China’s goods remain inferior and their prices are no longer as competitive so we expect Japan and South Korea will start eating China’s lunch. China however is on the verge of releasing free enterprise. 

Asian markets (especially China) care failing to break out even on the second and third times at resistance levels.
http://finance.yahoo.com/intlindices?e=asia

Germany is showing strength: Choose 2 or 5 years
http://finance.yahoo.com/echarts?s=%5EGDAXI+Interactive#chart2:symbol=^gdaxi;range=2y;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on

The Swiss are showing strength. 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 strength.
http://finance.yahoo.com/echarts?s=^BVSP+Interactive#chart1:symbol=^bvsp;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefine

American Economy
The US markets are showing strength. The US economy may not dip as Americans increasingly have hope that the Obama Regime will be thrown out of office so Americans can change back to an honest free enterprise system. Obama administration corruption rivals that of Greece and Italy.

This Week So Far
NAHB Housing Market Index Dec now 21 up from 20, possibly another bottom indication. Good
Housing Starts Nov 685K Up 8% from October’s 628K Unusually good since winter is setting in.
Building Permits Nov 681K up 4% from 653K last month. Unusually good
MBA Mortgage Index 12/17 declined -2.6% for seasonal reasons after increasing 4.1% last month when sales were up.
Existing Home Sales Nov were 4.42M down from 4.97M still not good thanks to Obama-Holden racist housing policies.
Crude Inventories 12/17 -10.570M dropped sharply after dropping -1.932M last month. Oil prices may rise again if Iran shuts down the Strait of Hormuz
Initial Claims 12/17 364K down slightly from 366K
Continuing Claims 12/10 3546K down slightly from 3603K
GDP - Third Estimate Q3 1.8% down slightly from 2.0% -
GDP Deflator - Third Estimate Q3 2.6% up slightly from 2.5% -
Michigan Sentiment - Final Dec 69.9 up slightly from 67.7 -
Leading Indicators Nov 0.5% down slightly from 0.9% -
FHFA Housing Price Index Oct -0.2% down slightly from -0.1%
Durable Orders Nov - 3.2% down slightly from -0.7%
Durable Goods Orders -ex Transportation Nov - -0.2% down slightly from0.7%

Today
Dec 23 8:30 AM Durable Orders Nov
Dec 23 8:30 AM Durable Goods Orders -ex Transportation Dec
Dec 23 8:30 AM Personal Income Nov
Dec 23 8:30 AM Personal Spending Nov
Dec 23 8:30 AM PCE Prices - Core Nov
Dec 23 10:00 AM New Home Sales Nov


Market outlook December 24, 2011

We expect good weather in the larger cities and the East Coast relative to the terrible weather last year will improve the mood of the nation as well as retail sales and business in general. The rally continued and our indicators are saying it will continue for a while. In addition to an improving US and German economic outlook, smart American investors are getting out of insolvent government backed bonds and back into the stock market. That is bullish but we should be ready to take profits as they recover near July highs. Remember though that January was very good last year and the market went down significantly afterwards. But American stocks could still rise close to this past year’s highs by the end of January. The NYSE MACD is definitely bullish and implies we could see the bull market last until November 2012.
http://www.martincapital.com/index.php?page=graph&view=macd

Real estate has turned the corner with the latest home sales, housing starts, and the recent NAHB survey giving more confirmations. But the market will not take off until Americans are confident that Obama and his racist-leftist supporters will be ejected in 2012. Racist liar-loans to Obama’s minority group brought down the American banks after several years of racist minority group appointments to the highest levels of Fannie and Freddie by democrat-socialist.
http://www.martincapital.com/index.php?page=graph&view=permits_and_construction

When it comes to jobs, Obama has to manipulate the government statistics just like all communists do to pretend things are better. Sales are up because consumers have been refinancing dropping their monthly expenses. http://www.martincapital.com/index.php?page=graph&view=unemployment

The VIX has is approaching 20 which would indicate complacency. That means the coming exuberant rally will be a good time to take profits and raise cash.
http://finance.yahoo.com/q/bc?s=%5EVIX&t=6m&l=on&z=m&q=l&c=

We had advanced once over 60% of the total recent August decline and predict we could possibly have as much as 95% recovery. But realize that as the upside potential is approached, then the downside risk exceeds the upside potential and it is time to lighten up. Also, remember January was very good last year and the market went down significantly afterwards so January is not necessarily a good predictor for the year. View 1yr. See:
http://finance.yahoo.com/echarts?s=^NYA+Interactive#chart4:symbol=^nya;range=1y;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Growth in bulk shipments in November was down and still at less than 20% of the bulk trade level that existed before Obama declared the USA was in a depression in one of his 2007 campaign speeches. http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stock markets were mixed last night. China up 0.9% %, Hong Kong up 1.4%, India down -0.5%, S. Korea up 1.1% and Japan closed.

European markets are up today in a range +0.7% to +1.1% half way through their day.

American market futures are up about +0.6% in after hour trading at 7:30 AM EST. It is an unreliable predictor.