Al Gore is the father of US Junk Science. He said “It isn't pollution that's harming the environment.

U.S. Supreme Court case to consider challenging racist preferences for blacks and Hispanics in college admissions. A top California high school class student whose family originally came from India is suing saying students of Obama’s and Hispanic race are getting preferential treatment at Harvard and Princeton. Farmers of Obama’s race got $billions based on Obama’s executive orders thus by-passed court scrutiny after Obama was elected. Obama is using executive orders to favor people of his race in housing, jobs, and education. Like Jews in the first half of the 20th century, who faced quotas at Harvard, Princeton, and other Ivy League schools, Asian-Americans and Caucasians, must meet a higher standard than other applicants based on measures such as test scores and high school grades, according to several academic studies.

Gingrich’s campaign is the best investment Obama supporters can make to destroy the Republicans. Gingrich’s message is one of sour greed and bitterness not hope and change, which America needs to get out of the Obama Declared Depression.

China National Offshore Oil Corp.’s battery unit invested $300 million to develop photovoltaic plants across Asia to produce the highly toxic batteries to supply the Spanish solar power company Isofoton.

European Union policies to promote the use of biofuels for transportation will cost consumers as much as 126 billion euros ($166 billion) between now and 2020, two environmental groups bragged as a global warming victory.

Sumco Corp., a Japanese silicon wafer maker, said it will cut about 1,300 jobs amounting to 15 percent of its workforce as it withdraws from supplying solar panel makers following a plunge in prices for the raw materials.



Al Gore is the father of US Junk Science. He said:
 “It isn't pollution that's harming the environment. It's the impurities in our air and water that are doing it”
 Our world faces a true planetary emergency. I know the phrase sounds shrill, and I know it's a challenge to the moral imagination.
 Two thousand scientists, in a hundred countries, engaged in the most elaborate, well organized scientific collaboration in the history of humankind, have produced long-since a consensus that we will face a string of terrible catastrophes unless we act to prepare ourselves and deal with the underlying causes of global warming.
 “I was recently on a tour of Latin America, and the only regret I have was that I didn't study Latin harder in school so I could converse with those people.”
 “Global warming, along with the cutting and burning of forests and other critical habitats, is causing the loss of living species at a level comparable to the extinction event that wiped out the dinosaurs 65 million years ago. “
 During my service in the United States Congress, I took the initiative in creating the Internet.
 I think the cost of energy will come down when we make this transition to renewable energy.
 The American democratic system was an early political version of Napster.
 “We are ready for an unforeseen event that may or may not occur.”

Al Gore says 2000 junk scientists support his “man attributed” global warming invention that made Al Gore a multimillionaire. But more than 20000 real scientists and engineers signed a petition that global warming is a natural phenomena that has occurred nine times already between the Earth’s ten Ice Ages. The earth when it was formed was red hot and today Earth is a lot colder. The Earth is the only planet in the solar system that still is hot enough to have geological activity. But the Earth is cooling down not heating up.
http://www.petitionproject.org/seitz_letter.php

World markets
Shilling said that China’s economy is headed for a ‘hard landing’ this year.

Sharp, Japan’s largest maker of LCD panels, forecast its worst annual loss since its founding a century ago, with its president saying exporting is “nearly impossible” with the current demand.

Germany’s largest bank, Deutsche Bank AG, said fourth-quarter profit fell 76 percent as Europe’s debt crisis cut trading and the company wrote down losses.

The USA and the Free-World stock markets posted their highest gains in over 15 years while the highest proportion of European companies on record are missing profit estimates. “I am not optimistic about Hong Kong’s export performance in the first half of this year,” John Tsang said today. “If exports of goods were to plunge in the first quarter, the overall economy might take a downturn in that quarter.” The euro weakened versus the yen and the dollar as Greece struggled to reach an agreement with bondholders on cutting the nation’s debt burden, stoking concern Europe’s crisis will deepen.

Singapore Airlines’ profit tumbled 53% on rising competition and costs.

The U.S. government considers a Japan plan to allow negative interest rates at government debt auctions.

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. Before the 1970’s transaction costs helped prevent stock market flash crashes.

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.


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
Cigna Corp. (CI), the U.S. health insurer that acquired Medicare managed-care provider Healthspring Inc., reported fourth-quarter earnings below estimates and forecast growth below estimates.

Komen foundation drooped funding of Planned Parenthood amid pressure from abortion groups to balance the killing of babies with the excisions of breast malignancies.

Mark Zuckerberg’s 56.9 percent of voting power control over Facebook Inc. puts too much power in the hands of one person and may deter potential investors, corporate-governance experts said.

AMR to cut 13000 jobs.

This week
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 NG
AM PCE Prices - Core Dec 0.2% up from 0.1% 2.4% core inflation rate OK
Employment Cost Index Q4 0.4% up from 0.3% Higher production costs NG
Case-Shiller 20-city Index Nov -3.7% dropping faster than October’s -3.4% NG
Chicago ProductionMI Jan 60.2 dropped from 62.5 production declined NG
Consumer Confidence Jan 61.1 a big drop from 64.5 not good

Yesterday
MBA Mortgage Index 01/28 -2.9% declines yet again -5.0% terrible
ADP Employment Change Jan 170K down from 325K Terrible
ISM Index Jan 54.1 up from 53.9 improved
Construction Spending Dec 1.5% up from 1.2% still depressed
Crude Inventories 01/28 4.175M up from 3.558M declining oil consumption

Today
Feb 2 7:30 AM Challenger Job Cuts Jan +38.6% up from +30.6 Good
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

This Week
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 February 2, 2012

Market looks ready to peak.

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. Seen as a leading economic indicator, yet no one seems to care. In the past, a precipitous decline in this index, which measures the cost of shipping bulk freight like grains, coal, and metal around the world, would have set off alarms around the financial world because it implies supply exceeds demand and something has to give.
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stock markets were up sharply last night. China up 2%, Hong Kong up 2%, India up 0.8%, and Japan up 0.4%


European markets are down today in a range +0.1% to –0.6% half way through their day. Italy is an outlier today, up 2.9% at the moment.

American market futures are flat about -0.1% in after hour trading at 8:30 AM EST.

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