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 Arabi

Boone Pickens comments…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.

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.

“To be sure that is not because the White House meant for that to happen,” said Pavel Molchanov, an analyst at Raymond James & Associates Inc. Obama has done everything he could to cripple American energy in order to sell Solyndra solar panels and electric cars that cost more energy to build than they save. And what is worse, the batteries that go with the Obama green systems are more toxic than if the homeowners burned green wood to heat their homes. Many have $60,000 subsidized solar systems in northern America where they are covered with snow and don’t work.

Obama corruption lead has peaked and is starting to slip. The lobbying corruption gave Obama a $1billion target for campaign spending. It does not look like he will make it. Gingrich is proving to be the lobbying corruption candidate for the Republicans.

World markets
The IMF chopped its estimate for 2012 global growth and warned it could drop as low as 1.3 percent if Europe lets the crisis fester for much longer. IMF chief economist Olivier Blanchard said at a news conference. "There is an even greater danger, namely that the European crisis intensifies, and in this case the world could be plunged into another recession."

Japan reported to a trade deficit and a slowing economy.

Dry goods trade has plummeted indicating China and India are in for a slow down unless they can stimulate internal consumption.

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
MBA Mortgage Index 01/21 -5.0% down from 23.1% terrible
Pending Home Sales Dec -3.5% down from 7.3% end of season
FHFA Housing Price Index Nov +1.0% up from -0.2% good
Crude Inventories 01/21 +3.56M up from -3.438M good
FOMC Rate Decision Jan 0-0.25% down from 0.25% getting dangerously like Japan

Yesterday
Initial Claims 01/21 377K rose from 352K Bad
Continuing Claims 01/14 3554K rose from 3432K Bad
Durable Orders Dec 3.0% down from 3.7% Bad
Durable Orders -ex Auto Dec 2.1% rose from 0.3% not meaningful
New Home Sales Dec 307K down from 315K bad
Leading Indicators Dec 0.4% down from 0.5% bad

Today
Jan 27 8:30 AM Chain Deflator-Adv. Q4 - from 2.6% -
Jan 27 8:30 AM GDP-Adv. Q4 - from 1.8% -
Jan 27 8:30 AM Chain Deflator-Adv. Q4 - from 2.6% -
Jan 27 9:55 AM Michigan Sentiment - Final Jan

Market outlook January 27, 2012
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.

Unemployment went down before and increased right after Obama’s speech. Bolsheviks always like to make statistics look better before a speech. If America continues with the Bolsheviks they may yet drive unemployment up and have starvation in America as they have had everywhere the Bolsheviks have governed especially the USSR, Eastern Europe, China, and the 3 million who recently starved in N Korea during the regime that just passed away.

Housing stock prices are set to plummet again has sales plummet again. Without quantitative easing a sudden drop in all stock prices becomes more probable. The DOW is considered a safe haven so it has passed last year’s high. The other markets are still about 6% below their highs of last year.

Former U.S. Treasury Secretary Larry Summers said, “Is escape velocity -- at a sufficient rate to get us back to full employment in a reasonable interval -- yet established, I think one would have to say the answer to that question is no.”

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 mostly closed for New Years again last night. China closed, Hong Kong up 0.3%, India closed, and Japan down –0.1%

European markets are down today in a range +0.2% to –0.6% half way through their day.

American market futures are up about 0.2% in after hour trading at 7:30 AM EST.

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