Facebook is not the problem. The problem was the padding of the pockets of those running the IPO and the looting the investors.

Overpriced Facebook (without a profit) tumbled 26% so far. It will likely the biggest mistake most of its investors ever made. Facebook is not the problem. The problem was the padding of the pockets of those running the IPO and the looting the investors. It is a good product that has had its reputation put at risk and may no longer have credible management. The biggest risk is that the founders are billionaires and can now retire and the company may now sink into oblivion.


Overpriced Apple (without a leader) will likely be down 28% by October after the quarterly report, and down 50% or more by this time next year. That is because MSNBC rip-off commentators did not report revenue and profit this latest quarter compared to the best quarter last year. They compared to a poor quarter last year before a new product release.  We base these levels on resistance areas and gaps in price.


The Rasmussen Reports daily Presidential Tracking Poll for Tuesday shows President Obama attracting 46% of the vote while Mitt Romney earns 45% support.

http://www.rasmussenreports.com/public_content

World market this week

Spanish renewable-energy companies once got Europe’s biggest subsidies have been abandoned by the Spanish government, and now must sell and work abroad or perish.

A Greek departure from the currency would inflict “collateral damage,” say economists of Pacific Investment Management Co. a view echoed by economists from Bank of America Merrill Lynch and JPMorgan Chase & Co. At worst, it could spur sovereign defaults in Europe as well as bank runs, credit crunches and recessions that may spark more euro exits. Global trade and financial ties mean the pain wouldn’t be confined to the euro area. Yields on Span’s bonds are now approaching an unsustainable 7%.

JPMorgan Chase estimates a 1-percentage point slump in the euro countries’ economy drags down growth elsewhere by 0.7 percentage point. Trade dependent China would be most adversely affected.

European markets climbed into the green on Tuesday on the heels of a strong session in Asia on hopes China will take action to boost its faltering economic expansion. But recent surveys show that China’s rising labor costs and a deteriorating regulatory environment are prompting almost a quarter of European Union companies to consider shifting investments out of China to other countries. That is what happened in Japan before they stagnated in the late 1980’s.

China's markets have declined for more than a year now and may be seeking a bottom. A triangle is forming indicating the upper and lower resistance levels are closing. But so far both the lows and the highs are still going lower (not good). http://finance.yahoo.com/echarts?s=000001.SS+Interactive#symbol=000001.ss;range=1y;compare=;indicator=ema(100,200)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

Emerging markets just gave a head and shoulder sell signal now and are getting worse.

http://finance.yahoo.com/echarts?s=%5EMERV+Interactive#symbol=^merv;range=1y;compare=;indicator=ema(100,200)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

American Economy

Yesterday

May 29 9:00 AM Case-Shiller 20-city Index Mar –2.6% a drop after –3.5% last month.

May 29 10:00 AM Consumer Confidence May down to 64.9 from 69.2 last month, ha huge drop that looks like an error



Today

May 30 7:00 AM MBA Mortgage Index 05/26

May 30 10:00 AM Pending Home Sales Apr


This Week

May 31 7:30 AM Challenger Job Cuts May

May 31 8:15 AM ADP Employment Change May

May 31 8:30 AM Initial Claims 05/26

May 31 8:30 AM Continuing Claims 05/19

May 31 8:30 AM GDP - Second Estimate Q1

May 31 8:30 AM GDP Deflator - Second Estimate Q1

May 31 9:45 AM Chicago PMI May

May 31 11:00 AM Crude Inventories 05/26

Jun 1 8:30 AM Nonfarm Payrolls May

Jun 1 8:30 AM Nonfarm Private Payrolls May

Jun 1 8:30 AM Unemployment Rate May

Jun 1 8:30 AM Hourly Earnings May

Jun 1 8:30 AM Average Workweek May

Jun 1 8:30 AM Personal Income Apr

Jun 1 8:30 AM Personal Spending Apr

Jun 1 8:30 AM PCE Prices - Core April

Jun 1 10:00 AM ISM Index May

Jun 1 10:00 AM Construction Spending Apr


Market outlook May 30, 2012
The last week was up slightly but buying was very weak during the rise as indicated by the very low volume. The DJI is no longer a safe haven. The NYSE has also continues down.

http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=3m;compare=;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

The DJI could not pernetrate the head and shoulder neckline to the upside last week but may test it again. If the downtrend has taken hold these new tests will be lower and the new lows will go lower too. The DOW Industrial’s confirmed the Dow Rails sell signal last week which means there was never a confirmed DOW buy signal since the drop starting on August 2, of 2011. The Dow Theory Industrials and Rails sell signal of August 2, 2011 still holds.

http://finance.yahoo.com/echarts?s=%5EDJT+Interactive#symbol=^djt;range=3m;compare=;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

This next chart shows the Dow Rails are hitting resistance on upward movements.

http://finance.yahoo.com/echarts?s=%5EDJT+Interactive#symbol=^djt;range=my;compare=^dji;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 NYSE gave a sell signal. On an annual cycle basis (look 2009 to today) it appears the head and shoulders sell signal. On an economic business cycle basis (up to 20 + years) it shows the economy peaked in early 2000 and began a potential depression cycle decline during the Clinton administration. For an Obama-Holden regime Great Depression to be declared the market would need to drop another 15% from this current level. That could happen if the Obama-Holden regime is re-elected.

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 says the market volatility has a long way to go before the market bottoms. http://finance.yahoo.com/q/bc?s=%5EVIX&t=2y&l=on&z=m&q=l&c=

Baltic Dry Index is collapsing again after collapsing 90% already since the Obama-Holden regime elected. This is saying world trade by boat has collapsed under Obama.

http://www.bloomberg.com/quote/BDIY:IND/chart

Stock market update:

Asian markets were down last night. China down -0.2%, Hong Kong down -1.9%, Singapore down -0.6%, Taiwan down -0%, Japan down –1.1 %.

European markets were down half way through their day in a range of 0.2% to -1.9%

American market futures are down about -0.9% in after hour trading at 9 AM EST.