Initial unemployment claims did not decline and continuing claims began to rise again last week.

Initial unemployment claims did not decline and continuing claims began to rise again last week.

GE is holding a cash horde of over $102 billion of untaxed profits in untaxed off shore accounts outside the U.S. and Obama’s economic advisor is the president of GE.

Obama plans to cut retired military pensions and medical care. No consideration has yet to be given to cutting Medicare fraud, government corruption, government expansion, and waste.

The annual inflation is four times the quarterly inflation rate or 3.6%. So if the GDP increased 3% but inflation was 3.6% the real economy declined by (3.0%- 3.6%). It declined 0.6% when inflation is taken out.

Commercial saturation (miniaturization) of many sites is beginning to degrade the speed of display and is a tremendous drag on weather sites at the moment and could substantially degrade Facebook as they increase commercials. People are now finding ways to avoid TV commercials. MSNBC commercials now run three or four minutes instead of one minute and people are leaving the TV on but are leaving the room and doing other things. TV and the value of commercials are declining behind the scenes. Untimely the commercials will no longer pay for themselves and people will leave sites like Facebook.

Gangster states China and Russia are supporting the murdering Islamic socialist leaders of Syria and are perceived as fearing they will themselves soon face revolutions in Russia and China. Russia has both terrorists and now political unrest. China has stepped up murdering people to silence protests.

We have a stock market completing a strong up-trend, and showing signs of technical fatigue against a backdrop of sentiment that has caught up to the rally. The fundamentals are fading as volume declines and may already be reflected in the price.

Rising oil prices are stalling the American economy the Fed warns. That is due to Obama shutting down American production and refusing to allow Canadian oil to flow into America.


World markets
Reflation of bank balance sheets will be a boon to banks now.

Japan’s diminished nuclear capacity will be an economic disaster and makes Japan especially vulnerable to the potential loss of crude supplies, Tanaka said at a conference in Tokyo.

BRIC investors are losing their shirts as state companies freeze prices and growth among the socialist nations slows.

Starving North Korea once again agrees to halt nuclear tests, and ICBM missile launches in exchange for US food. International socialists and Islamists would rather develop nuclear weapons than grow crops to feed their people. Socialists place no value on the lives of their people.

China is heading toward a hard economic landing. China plans to pirate Apple technology and uses the iPad name to deceive customers with inferior knock-offs. US technology corporations will be forced to pull future production out of China because China’s government gangsters are demanding “protection money” to stay in business in China. See:
http://www.bloomberg.com/news/2012-02-29/apple-says-allowing-china-s-proview-to-use-ipad-brand-would-harm-consumers.html

The free world will soon have to shun corrupt gangster China products built with stolen technology by Chinese slaves.

A Bank of Japan policy board member Hidetoshi Kamezaki said higher oil prices, coupled with the weakening of the Japanese economy and yen, could reduce corporate earnings and dampen consumer spending.

The European Central Bank, which today offered lenders a second round of 1% loans, will help some bank stocks double this year, as they loan at a 5% to 6% rate. Greek bonds however can no longer be used as collateral for loans. Greece is losing the battle to remain on the Euro.

World Bank President Robert Zoellick, called for Beijing to reduce the dominance of state companies. Independent analysts say that state companies are consuming massive subsidies while private companies create most of China's new jobs and wealth.

Standard & Poor's just lowered its credit rating on Greece to ‘selective default. The European Central Bank has temporarily suspended the eligibility of Greek bonds as collateral at the central bank's monetary policy operations.

Elpida Memory Inc., the last Japanese maker of computer-memory chips, filed the nation’s biggest bankruptcy in two years after it failed to win a second government bailout.

South Korea, the fastest-growing producer of greenhouse gases among industrial democracies, rejected a cap- and-trade system to cut carbon emissions.

Italian business confidence fell to a two-year low in February and the economy entered its fourth recession since 2001.

Corruption is a high tax on the free enterprise private engine driving China’s economy. A whole class of Communist elitist parasites has swarmed in China now and is destroying the spirit of new entrepreneurs. China’s stocks could fall 50% from here as Obama’s announced worldwide “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 but is losing steam.
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 hitting a limit now with a head and shoulder sell signal. 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 topping. Brazil broke through moving average but did not set a new high. It is now beginning to look like a head and shoulder sell signal coming soon.
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
US Treasuries continue to loose safety as well as value. Interest rates lost their luster long ago but now they have little room to go lower. Even high priced gold is now looking better than treasuries. Europe is reflating their bank reserves and profits now with low interest loans as we have done since 2007.

Durable Orders Jan -4.0% down sharply from +3.0% last month
Durable Orders -ex Transportation Jan -3.2% down sharply from +2.2% last month
Case-Shiller 20-city Index Dec -4.0% worse again and down from -3.7% last month
Consumer Confidence Feb 70.8 improved from 61.1

MBA Mortgage Index 02/25 -0.3% still negative -4.5% -
GDP - Second Estimate Q4 3.0% first they dropped it so now they can raise it 2.8% This is the annual rate
GDP Deflator - Second Estimate Q4 0.9% 0.4% 0.4% 0.4% This is the quarterly rate. The annual inflation is four times the quarterly inflation rate or 3.6%. So if the GDP increased 3% but inflation was 3.6% the real economy declined by (3.0%- 3.6%). It declined 0.6% when inflation is taken out.
Chicago PMI Feb 64.0 up from 60.2
Crude Inventories 02/25 4.160M up from 1.633M

Yesterday
Initial Claims 02/25 351K flat at 351K
Continuing Claims 02/18 3402K up from 3392K
Personal Income Jan 0.3% down from 0.5%
Personal Spending Jan 0.2% up from 0.0%
PCE Prices - Core Jan 0.2% constant 0.2%
ISM Index Feb 52.4 service sector declined 54.1
Construction Spending Jan -0.1% declined significantly 1.5%

Market outlook March 2, 2012

Apple valuation hit an absurd $0.5 Trillion and yet they lost their creator last year. Apple now stands to lose future Apple stock buyers their fortunes when the over-evaluation implodes.

Volume dropped as price rose slightly. Money is clearly being withdrawn now from the stock markets and treasuries are no longer appreciating. When any market declines, wealth contracts and flows out of all markets and on to the sidelines.

Contrarian “Surprise Index” says the stock market is overpriced. The WSJ said stock investors might be in for a nasty surprise.
http://www.bloomberg.com/quote/CESIUSD:IND

Head and shoulders sell signals are now forming in S&P and NYSE. DOW rails do not confirm the DOW industrial’s rise. No rail confirmation means there is no DOW buy signal. The market nears a precipice of negative economic data.

Stock market volume is decreasing at a rate of 10% per year under Obama policy concerns. Americans are gradually going broke under Obama. Can America afford another 9 months of Obama?. Stock volume is incredibly thin making it easy to manipulate the market… until the funds pull the plug again.

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

There is so much storage capacity at the moment that enough oil cannot be drilled to fill the tankers and supply energy needs at the same time and that is why shortages occur as prices rise. It did not work last year but the economy has declined and tankers are free this year.
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stock markets were up last night. China up 1.4%, Hong Kong up 0.8%, India up 0.3%, and Japan up 0.7%.

European markets are flat today in a range -0.4 % to 0.4% half way through their day.

American market futures are down about –0.1% in after hour trading at 7:00 AM EST.