Boone Pickens commented, "We got some really stupid people in government. "

Scientists claimed in the WSJ that Global Warming is the latest brand of Junk Science

Trofim Lysenko was father of USSR Junk Science
He claimed:
 he could transform rye into wheat and wheat into barley
 that song-birds gave birth to cuckoos,
 that weeds are transmutations of food grains
 Bacteria emerge from lifeless matter
 New hybrid chickens emerged from one egg fertilized by several roosters
 Cows can be provoked to produce fatter milk with a “chocolate diet” treatment

Through a series of intrigues and highly politicized public “discussions”, Trofim Lysenko managed to destroy practically all of the intelligent biologists in the USSR. More than 3000 biologists were fired, arrested, or executed. One, Nikolai Vavilov was disgracefully dismissed from the presidency of the Agriculture Academy in 1938 and died in prison in 1940. The genetic science in Russia was effectively destroyed until the death of Stalin in 1953 despite successive failures; Lysenko remained in the leadership of biology and briefly regained the position of the President of the Academy during Khrushchev.

Note that “Capitol Hill in Washington DC has fully recovered from the Obama Depression. That is right, Obama is stimulating “Big Government”
DC districts by name
http://www.zillow.com/local-info/DC-Washington-home-value/r_41568/#metric=mt%3D34%26dt%3D1%26tp%3D5%26rt%3D8%26r%3D41568%252C121685%252C275465%252C121788%26el%3D0

A tax on financial transactions will significantly drop stock market volatility and the drop the high end of the PE ratio of the market.

A tax on financial transactions will significantly drop stock market volatility and the drop the high end of the PE ratio of the market. It will end high speed trading and events such as flash crashes. But it has to be set lower than 0.1%. Even 0.01% would cause a significant sell off. The market is up 20% in just 4 months.

A Bloomberg poll foreign participants favored Romney’s private equity experience better equips him to manage the U.S. economy from the Oval Office. Forty-five percent say it would equip him better, while 41 percent say it makes no difference. U.S. respondents place greater weight on Romney’s investment background, with almost two-thirds of them considering it an asset and the rest seeing no difference.

Boone Pickens commented…We got some really stupid people in government. If we are going to be saps then we will lose the Canadian oil source that exceeds that of Saudi Arabia. Trucks are going to move to natural gas with or without Obama. Intelligent people do not try to avoid a Great Depression by first declaring one and then restricting energy supplies and trying to raise taxes. As Boon Pickens said today, We got some really stupid people in government.

World markets
French consumer spending fell 0.7 percent from November in December as surging joblessness and concern about looming tax increases prompted households to cut back spending.

France is in favor of a financial transaction tax. We think it will happen.

The Juan was poised for its worst monthly loss in 18 years earlier before rallying after Greek Prime Minister Lucas Papademos said progress had been made in talks with creditors.

The World Bank cut its forecast for global growth including China, by the most in three years.

We expect the markets will all form head-and-shoulder sell signals after breaking their 200 DMA. World trade “Bulk Shipments” have collapsed to the lowest world bulk trade level that existed since Obama declared the USA was in a depression in one of his 2007-2008 campaign speeches. Asian markets (especially China) are failing to break out some on the second and third times at resistance levels. China’s stocks could fall 50% from here if Obama’s announced “Great Depression” spreads there too.
http://finance.yahoo.com/q/ta?s=000001.SS&t=2y&l=on&z=l&q=l&p=e200%2Ce100&a=&c=

Germany broke through the resistance levels: 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 broke through the resistance levels. Choose 2 or 5 years http://finance.yahoo.com/echarts?s=%5ESSMI+Interactive#chart1:symbol=^ssmi;range=2y;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Emerging markets show strength. Brazil broke through
http://finance.yahoo.com/echarts?s=^BVSP+Interactive#chart1:symbol=^bvsp;range=2y;indicator=ema(100,200)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

American Economy
Personal Income Dec 0.5% up from 0.1% A 6% per year increase (big bonuses?)
Personal Spending Dec 0.0% down from 0.1% No increase last Xmas
AM PCE Prices - Core Dec 0.2% up from 0.1% 2.4% core inflation rate

Today
Jan 31 8:30 AM Employment Cost Index Q4
Jan 31 9:00 AM Case-Shiller 20-city Index Nov
Jan 31 9:45 AM Chicago PMI Jan
Jan 31 10:00 AM Consumer Confidence Jan

This Week
Feb 1 7:00 AM MBA Mortgage Index 01/28
Feb 1 8:15 AM ADP Employment Change Jan
Feb 1 10:00 AM ISM Index Jan
Feb 1 10:00 AM Construction Spending
Feb 1 10:30 AM Crude Inventories 01/28
Feb 1 2:00 PM Auto Sales Jan
Feb 1 2:00 PM Truck Sales Jan
Feb 2 7:30 AM Challenger Job Cuts Jan
Feb 2 8:30 AM Initial Claims 01/28
Feb 2 8:30 AM Continuing Claims 01/21
Feb 2 8:30 AM Productivity-Prel Q4
Feb 2 8:30 AM Unit Labor Costs Q4
Feb 3 8:30 AM Nonfarm Payrolls Jan
Feb 3 8:30 AM Nonfarm Private Payrolls Jan
Feb 3 8:30 AM Unemployment Rate Jan
Feb 3 8:30 AM Hourly Earnings Jan
Feb 3 8:30 AM Average Workweek Jan
Feb 3 10:00 AM Factory Orders Dec
Feb 3 10:00 AM ISM Services Jan

Market outlook January 31, 2012
Yesterday’s volume was extremely low.

Near the end of bull markets people move to the safety of the DOW stocks and away from small caps. That is what we have been seeing in January. The DOW is considered a safe haven so it has been passed last year’s high. The other markets still about 6% below their highs of last year.

The VIX indicates extreme complacency now. A sharp computer sell-off could end the current rally any time now and trigger stop-losses with huge losses.
http://finance.yahoo.com/q/bc?s=%5EVIX&t=2y&l=on&z=m&q=l&c=

Bulk shipments continue to fall and have already collapsed to the lowest world bulk trade level that existed since Obama declared the USA was in a depression in one of his 2007-2008 campaign speeches. It is now less than 7% of the international trade that existed just before Obama was elected.
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stock markets were up last night. China up 0.3%, Hong Kong up 1.1%, India up 1.9%, and Japan up 0.1%

European stocks rose after plunging yesterday. Yesterday Italy’s market closed down over 3%.
European markets are up today in a range 0.4% to 1.4% half way through their day.

American market futures are up about 0.4% in after hour trading at 8 AM EST.

We estimate the peak will be soon in a head-and-shoulders sell signal.