Obama should abandon his re-election effort in favor of Hilary Clinton

Obama does not realize that what the EU is going through is what Obama is setting the USA up to do and that is to default on debt and hurt everyone with a 50% haircut who owns US Treasuries in about 7 years. The USA needs to throw out the socialist Democrats who believe in spending beyond our means.

Patrick Caddell, who was a pollster to former President Jimmy Carter, and Douglas Schoen, who worked for Bill Clinton, both said Obama should abandon his re-election effort in favor of Hilary Clinton, in an opinion piece in the Nov. 21 edition of the Wall Street Journal. They both said that Hillary Clinton is “the only leader capable of uniting the country.”

World markets

Fitch Ratings downgraded Portugal’s government credit rating to junk bond status

European Banking Authority may ask German lenders to boost their capital level by more than $16 billion as the regulator reviews their ability to withstand losses from the sovereign-debt crisis.

India’s rupee fell to a record 14.6 percent the worst- performing among Asia-Pacific’s 10 most-traded currencies and will also spur inflation and increase gasoline subsidy costs in a nation that imports 80 percent of its fuel.

European banks are said to be swapping worthless assets at full value to keep the illusion that they have the real cash not the accumulated losses. The USA banks did the same thing before the implosion by swapping worthless defaulting mortgage based derivative paper. By trading worthless paper that way, they do not have to recognize the true loss.

China double 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 bounced: 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 bounced. 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 double bounce.
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

Last week
Industrial Production Oct 0.7% up from 0.2% very positive
Capacity Utilization Oct 77.8% up 77.4% good sign
Initial Claims 11/12 388K dropped from 390K very good
Continuing Claims 11/05 3608K dropped from 3615K good
Building Permits Oct 653K up from 594K seasonal correction expected drop number but instead it went up. Very good
Leading Indicators Oct were up 0.9 from 0.2 last month very good, starting Christmas before Halloween seems to be working.
Existing Home Sales Oct was 4.97 M up from 4.91M, very good
GDP - Second Estimate Q3 2.0% dropped from 2.5%
GDP Deflator - Second Estimate Q3 2.5% unchanged from 2.5%
That means inflation adjusted GDP dropped from 0% to –0.5%
MBA Mortgage Index 11/19 -1.2% much improved from previous -10.0%
Initial Claims 11/19 393K up slightly from 388K
Continuing Claims 11/12 3691K up significantly from 3608K
Personal Income Oct 0.4% up from 0.1%
Personal Spending Oct 0.1% down sharply from 0.6%
PCE Prices - Core Oct 0.1% up slightly from 0.0%
Durable Orders Oct -0.7% down slightly from -0.6%
Durable Orders -ex Transportation Oct 0.7% down sharply from 1.8%
Michigan Sentiment - Final Nov 64.1 down slightly from 64.2
Crude Inventories 11/19 -6.219M down sharply from -1.056M

This week
The good
Consumer Confidence Nov 56.0 up sharply from 39.8
FHFA Housing Price Index Sep +0.9% great improvement from -0.1%
Construction Spending Oct 0.8% improved from 0.2%
ISM Index Nov 52.7 good inc in manufacturing from 50.8
Pending Home Sales Oct 10.4% -great improvement from -4.60%
Chicago PMI Nov 62.6 manufacturing pick up from 58.4
Crude Inventories 11/26 3.932M inventory good for lower prices -6.219M

The Bad
Auto Sales Dec too bad for Obama to admit 4.27M
Truck Sales Dec too bad for Obama to admit A 5.84M
Hourly Earnings Nov -0.1% down from 0.2%
ADP Employment Change Nov 206K fewer got jobs down from 110K
Initial Claims 11/26 402K more loosing jobs from 393K
Continuing Claims 11/19 3740K more unemployed from 3691K
Productivity-Rev. Q3 2.3% down from 3.1%
New Home Sales Oct 307K down from 313K
Challenger Job Cuts Nov -12.8% unchanged 12.6%

The indifferent
Average Workweek Nov 34.3 no change from 34.3
Nonfarm Payrolls Nov 120K a few more jobs created 80K amid massive layoffs
Nonfarm Private Payrolls Nov 140K private jobs created 104K
MBA Mortgage Index 11/26 winter slowdown from -1.2%
Unit Labor Costs Q3 -2.5% unchanged -2.4%
Case-Shiller 20-city Index Sep -3.6% down less than -3.80%

The Obama lies
Unemployment Rate Nov 8.6% Obama communist style lies say unemployment down from 9.0%. That is because Obama said he should not get re-elected if unemployment is greater than 9%

Market outlook December 2, 2011

Stocks hover near recent highs. The US and the world economy will not likely slip back into a recession until early next year under current trends in Obama incompetence. Obama cannot apparently destroy America without outside assistance. Market vector is predicting the same type of rally we have been talking about: Select stock index data, then stock index daily, then the index you want.
http://marketvector.com/data/index.htm

There was tremendous cash flow into the market this week. The coming short squeeze will probably come within 60 days and it is good to take profits in stocks with good runs and buy into stocks and sectors/indexes that are low and that will benefit from a good year end run-up in sales.

The housing market has stabilized but is still near the bottom. Many are predicting a real estate come back next year.
http://www.martincapital.com/index.php?page=graph&view=permits_and_construction

Today Obama had one of his idiot-economists arguing against three businessmen on Squawk Box trying to claim that the bounce in 2009 was due to Obama not the bounce that every recession has. Obama knows how to create corruption with his spending and is pushing for an obscene $1Billion Presidential campaign fund, but he is too dumb when it comes to creating new jobs such as building the oil pipeline from Canada that would create heavy industry jobs and cut American production costs making the USA more competitive. When it comes to jobs, Obama is a moron and has to manipulate the government statistics like all communists do to pretend things are getting better.
http://www.martincapital.com/index.php?page=graph&view=unemployment

We are at the critical upside resistance level now and it needs a breakout so the advance resumes and triggers a short squeeze that could rum stocks up close to previous highs of this year. That will be the time to get back into cash. Complacency has not set in at all yet. 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=

We advanced once over 60% of the total recent decline and predict we could possibly have as much as 95% recovery. Market Vector agrees with us. But realize that as the upside potential is approached, then the downside risk exceeds the upside potential and it is time to lighten up. View 6 mos. See: http://finance.yahoo.com/echarts?s=^NYA+Interactive#chart1:symbol=^nya;range=6m;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Demand from Asia should be sufficient for increased volumes even if the Euro crisis leads to a collapse in European sales, per Bremerhaven BLG analysis: Insert into explorer.
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stock markets were up last night. China down –1.1%, Hong Kong up 0.2%, India up 2.2%, and Japan up 0.5%.

European markets are up today in a range 0.6% to 1.7% half way through their day.

American market futures are up about 1% at 8:00 AM EST. They are an unreliable predictor.