Overpriced Facebook (without a profit) tumbled 25% the first week. Overpriced Apple (without a leader) will likely be down 28% by October after the quarterly report, which will likely be down more than 25% from the same quarter last year.

Stock buybacks have fallen to a three-year low as U.S. chief executive officers boost spending on plants and equipment to a record dropping profits in lieu of higher Obama tax rates. Then in anticipation of a profit friendly administration with Mitt Romney, the expanded plant production will then boost production, profits, and employment for Mitt Romney.

Most voters continue to support a welcoming immigration policy but still feel the focus of immigration reform should be on gaining control of the border not legalizing the status of undocumented workers already living in the United States.

However: Twenty-nine percent (29%) still feel the focus of immigration reform should be legalizing the status of undocumented workers already living in the United States.

25% are Strongly Opposed to repeal President Obama’s national health care law.

24% are Very Concerned that efforts to identify and deport illegal immigrants violate the civil rights of some U.S. citizens

23% view France Very Unfavorably, and of course

26% strongly support President Obama

http://www.rasmussenreports.com/public_content/politics/current_events

http://www.rasmussenreports.com/public_content/politics/questions/pt_survey_questions/april_2012/questions_immigration_ii_april_20_21_2012


World market this week

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

Last Week

Existing Home Sales Apr 4.61M up slightly from 4.48M (seasonal)

MBA Mortgage Index 05/19 3.8% sharply down from 9.2% (very bad)

New Home Sales Apr 343K up from 328K (very good)

FHFA Housing Price Index Mar 1.8% up from 0.3% (good)

Crude Inventories 05/19 0.883M contracts from 2.128M (fuel scarcity?)

Initial Claims 05/19 372K up from 370K (adjusted for Obama transfer of bad news) bad news

Continuing Claims 05/12 3284K up from 3265K (adjusted for Obama transfer of bad news) bad news

Durable Orders Apr 0.2% -up from -4.0% (good)

Durable Orders -ex Transportation Apr -0.6% slightly improved from -0.8%

Friday

Michigan Sentiment - Final May 79.3 77.improved from 77.8 as Obama is rejected by more Americans

Today

May 29 9:00 AM Case-Shiller 20-city Index Mar

May 29 10:00 AM Consumer Confidence May

This Week

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

May 30 10:00 AM Pending Home Sales Apr

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 29, 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-Holder 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. The ugly Obama-Holden regime can get even uglier.

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 up last night. China up 1.2%, Hong Kong up 1.3%, Singapore up 1.3%, Jakarta up 0%, Japan up 0.7 %.

European markets were up half way through their day in a range of -0.2% to 0.9%

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