The run on Spanish banks is accelerating. 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.

There is light at the end of the tunnel.


The Obama supporting University of Michigan reported Consumer Confidence increased from 76.4 to 79.3 last Friday and this Monday the more objective Conference Board reported Consumer Confidence dropped from 68.7 to 64.9. We can expect the levels to be different but the Conference Board showed it dropped 3.8% which implies UM falsified the data by increasing it 6.7% the way Obama and Putin like to report.
http://www.martincapital.com/index.php?page=graph&view=consumer_confidence

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.

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

http://www.rasmussenreports.com/public_content


World market this week

The run on Spanish banks is accelerating. 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.

Poland’s economic growth slowed in the first quarter as exports and fixed investments declined and weaken the case for central bank rate increases.

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
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 Conference Board Consumer Confidence May down to 64.9 from 69.2 last month, a huge drop that looks like an error of more than +6% optimism with the Obama-Holder UM number last Friday. The divergence could be just more Obama/ USSR style creative falsification of data.

http://www.martincapital.com/index.php?page=graph&view=consumer_confidence

Yesterday

MBA Mortgage Index 05/26 -1.3% plunged again from 3.8%

Pending Home Sales Apr -5.5% collapsed from 4.1%

Today

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

This Week

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 31, 2012

The most frightening statistc now is the one MSNBC’s Crammer used to say was the best indicator for the world economy. The Baltic Dry Index is collapsing again after collapsing already 90% since the Obama-Holder regime was elected. It is saying world trade by boat has collapsed under Obama.
http://www.bloomberg.com/quote/BDIY:IND/chart


It has been calculated that each job the Obama-Holder created has cost American taxpayers $4.1 million.

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 penetrate the head and shoulder neckline to the upside last week and has plunged 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=^dji;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

This next chart shows the Dow Rails hit resistance on upward movements and is plunging now.

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-Holder 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=

Stock market update:

Asian markets were down again last night. China down -0.5%, Hong Kong down –0.3%, Singapore down -0.4%, Japan down –1.1 %.

European markets are mixed half way through their day in a range of 0.8% to -1.5%

American market futures are up about 0.4% in after hour trading at 7 AM EST.