China is now headed towards an Obama depression. China’s recovery is stalling. Obama is not fit to lead the world out of the Obama depression that he in his ignorance declared during his campaign to frighten people into considering a pro-Marxist president who has delusions of changing the American Constitution.

China is now headed towards an Obama depression.   China’s recovery is stalling.  Obama is not fit to lead the world out of the Obama depression that he in his ignorance declared during his campaign to frighten people into considering a pro-Marxist president who has delusions of changing the American Constitution.

Barach Obama is “not a fit person” to lead the United States of America. Obama’s culture of incompetence and corruption permeates from the top throughout the executive branch and speaks volumes about the lack of intelligent, educated, and effective administrative staff. Obama continues to mislead the American people with his contentious and divisive behavior by blaming others for his administration incompetence; blaming everyone but himself. Obama exhibited willful blindness to extensive corruption and misuse of taxpayer funds. Real middle class household income in March was down $4,300 since Obama took office and down $2,900 since Obama claimed economic recovery began. The US inflation adjusted Gross Domestic Product declined 66% in the latest quarter.  Obama is destroying the American middle class and is attempting to divide Americans by his emphasis on class and race.

Real Gross Domestic Product declined from a 2.1%annual net growth rate to a 0.7% annual net growth rate in the latest three months.  Why?
Last quarter the GDP improved 3% but inflation was 0.9% so that the real growth was only 2.1%.
In the latest quarter GDP improved 2.2% but inflation was 1.5% so that the real growth was only 0.7%.
That is a 66% decline in real GDP from 2.1% to 0.7% net growth.



Apple clearly bungled the Java security patch, placing Mac users at risk in the process. This isn’t the first time Apple has failed to patch a known security issue in a timely fashion, and it reveals a major weakness in the company’s security program. Mac OS X, like other operating systems, relies heavily on third-party components since Apple doesn’t necessarily control the code. Apple is reliant on the software’s developers to manage any security vulnerabilities that come up.



The New York Times reported:

The complaints come from Apple consumers … who say that their accounts have been hijacked or that some apps are falsely advertised. And they come from creators of apps, who say they are having to deal with fraudulent purchases that drain their time and resources. It took Apple 75 days to respond to a hole in Open SSL -- the open-source encryption system that is supposed to protect credit card data from getting loose on the Internet -- even though the vulnerability was made public last September.



Apple’s stock price will likely crumble over the next two quarters. Apple had its best quarter last year and this latest great quarter is hype because it comes from analysts not comparing this “product introductory quarter” with the introduction quarter last year. If they did a valid comparison they would see Apple profits peaked last year and their latest product is not doing as well as last year’s new product. The only quarters when apple does well are the ones when a new product is introduced. There is nothing planned the next two quarters. China is also challenging Apple for the use of the name iPad. It seems Apple got the right to use the name from a Taiwan subsidiary and not from the mainland China headquarters. If Apple gave a dividend equal to its total pot of cash it would only be $30/share or 4% and it would all be gone. At current prices any Apple dividend would be too small to matter. Apple has lost its creator for the final time and each time that has happened Apple has plunged 80% or more starting as soon as investors saw the paltry progress they made without Steve Jobs. Steve Jobs can never rescue Apple again!



Samsung just overtook Apple as No. 1 Smartphone Maker in the 1st Quarter

http://business.blogs.cnn.com/2012/04/27/samsung-overtakes-apple-nokia-in-phone-sales/?hpt=hp_mid



Obama claims America failed. Some times he blames his Obama depression on Bush and sometimes he blames it on free enterprise. Obama, is a poor person when it comes to his thinking. He cannot take responsibility for his stupidity. It is always someone else’s fault.



The latest Rasmussen Poll shows Mitt Romney earning 47% of the vote while President Obama picks up support from 45%. Four percent (4%) would vote for a third party candidate, while three percent (3%) are undecided.

http://www.rasmussenreports.com/public_content/politics/obama_administration/daily_presidential_tracking_poll



Something is wrong with Average Salary of a teacher ................ $40,065

Average Salary of Soldier DEPLOYED IN AFGHANISTAN … $38,000



World market this week

Spain slipped into a recession, dimming the outlook for the region’s exporters GDP contracted -0.3% even ignoring the contraction hidden by inflation.



Fear is that Italy will soon join Spain in the crisis of European Socialism.



Rupert Murdoch is “not a fit person” to lead a major international company, U.K. lawmakers said, after his U.K. unit misled Parliament about the extent of phone hacking at its News of the World tabloid.



The real growth rate in the USA decline in the last quarter from 2.1% to just 0.7% clearly another Obama no-brainer. The USA cannot rescue the world until Obama socialism is no longer a threat to the world.



Standard & Poor’s cut Spain’s sovereign debt rating two levels to BBB+ last week from A. Italy’s short term borrowing costs jumped 58% (1.772, up from 1.119 percent interest) at the sale of 8.5 billion euros ($11.3 billion) of six-month bills as renewed concern about the spread of the region’s debt crisis forced the Treasury to offer higher rates to attract investors.



China has been declining for more than a year now. Chinese inflation data disappointed, with March consumer price index rising 3.6%. If the economic output grew 8% and inflation grew 3.6% that means real growth in China has declined to 4.4%.

http://finance.yahoo.com/echarts?s=000001.SS+Interactive#symbol=000001.ss;range=my;compare=;indicator=ema(100,200)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;



Emerging markets are still lower than last year’s high and look like a head and shoulder sell signal.

http://finance.yahoo.com/echarts?s=%5EMERV+Interactive#symbol=^merv;range=2y;compare=;indicator=ema(100,200)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;



American Economy

Reports showed U.S. business activity expanded at the slowest pace since November 2009, adding to evidence that manufacturing is cooling.



Yesterday

Personal Income Mar 0.4% up from 0.2%

Personal Spending Mar 0.3% down from 0.8%

PCE Prices - Core Mar 0.2% up from 0.1%

Chicago PMI Apr 56.2 significantly down from 62.2



Today

May 1 10:00 AM ISM Index Apr

May 1 10:00 AM Construction Spending Mar

May 1 2:00 PM Auto Sales Apr

May 1 2:00 PM Truck Sales Apr

This Week

May 2 7:00 AM MBA Mortgage Index 04/28

May 2 8:15 AM ADP Employment Change Apr

May 2 10:00 AM Factory Orders Mar - -2.5%

May 2 10:30 AM Crude Inventories 04/28

May 3 7:30 AM Challenger Job Cuts Apr

May 3 8:30 AM Initial Claims 04/28

May 3 8:30 AM Continuing Claims 04/21

May 3 8:30 AM Productivity-Prel Q1

May 3 8:30 AM Unit Labor Costs Q1

May 3 10:00 AM ISM Services Apr-

May 4 8:30 AM Nonfarm Payrolls Apr

May 4 8:30 AM Nonfarm Private Payrolls Apr

May 4 8:30 AM Unemployment Rate Apr

May 4 8:30 AM Hourly Earnings Apr

May 4 8:30 AM Average Workweek Apr







Market outlook May 1, 2012

Speculation in HD, IBM, INTC, KFT, MCD, PFE, WMT stocks appears responsible for the distortion seen in the DJI. Apple is not a component of the DJI so the DJI would be in real trouble.



If the broad market is doing so well why are we still a few percent below the high of a year ago and a lot below 2007? Why is the broad market still lower today than in 2000? Why is the real USA GDP annual rate this latest quarter only 0.7% now down significantly from its 2.1% annual rate the last quarter?



Apple rose 30% but earnings peaked last year. If it is a good buy, how come Apple had a higher quarter last year when the price was 30% lower? Cramer is having another Obama type no-brainer. Apple is not a component of the DJI so the DJI is doing better than most indices.



For the last month the real stock market has declined. No DOW Rails confirmation still means there is no DOW buy signal since the recent peak and then collapse in August of 2011. It is looking like a head and shoulder sell signal forming in the Rails too. We are a few days away from a complete breakdown of the market.

http://finance.yahoo.com/echarts?s=%5EDJT+Interactive#chart1:symbol=^djt;range=2y;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined



On a quarterly cycle basis (look at 6 months), the New York Stock exchange second neckline was confirmed being broken on the down side. On an annual cycle basis (look at 2009 to today) it appears the head and shoulders is already in place and the market is about to break down for that mini cycle. On an economic business cycle basis (up to 20 + years) it shows the economy peaked in early 2000 and began to decline during the Clinton administration. http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=2y;compare=;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;



The VIX is loosing its predictive power as market manipulators learn how to manipulate it lower. 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=

Baltic Dry Index has just peaked this past month at only at 10% of its 2008 high. This is a sign that China’s recovery is stalling. Obama is not fit to lead the world out of the Obama depression that he in his ignorance declared during his campaign to frighten people into considering a pro-Marxist president who has delusions of grandeur.http://www.bloomberg.com/quote/BDIY:IND/chart

Stock market update:

Mainland Chinese markets were closed for a public holiday Monday, Japan down –1.8%

Most European markets European stock markets closed May Day, Britain up 0.3%.

American market futures are flat about -0% in after hour trading at 7AM EST.