We expect that a major market sell-off will continue at least until Americans have hope there will be a change confirmed in November.

Rush Limbaugh reported our findings yesterday about how the Obama regime distorts statistics optimistically and then degrades them to closer to actual levels a week after they are reported. Basically the wanna-be socialists prefer to err on the positive side and then correct them downward when no one is looking. The unemployed are ignored by the Obama-Holder regime.


The wanna-be Apple billionaires similarly deceived Apple buns by not telling them that they compared the last quarter with the newest Apple product to the quarter before Apple introduced Steve Jobs new product last year. That means that next Quarter Apple with be shown automatically declining in sales and income because it will be compared to Steve Jobs’ best quarter ever that occurred last year. At that time everyone will realize the wanna-bees have already sold out of Apple at the top… and Apple profits peaked last year before founder Steve Jobs died. That is the same trick the wanna-be Obama socialists use as often as they can. Apple-buns will lose their shirts.

Wanna-be Facebook billionaires will (we predict) make a mad rush to the door when the public realizes that Facebook has not made a profit and no one on Facebook or using hand-held products can stand the advertising much less will be willing to pay for the bandwidth that advertising costs both in time and money. New Facebook buyers will lose their shirts. It is called irrational exuberance, deception, or socialism depending on who is selling you the bill-of-goods.

The Baltic Dry Index is declining again and it is already less than 10% of its 2008 high before Obama came to save America. Not only did the Dow Rails recently fail to confirm the DOW industrials buy signal… but the Industrials now joined the Rails and both plunged and gave sell signals yesterday. This is a Dow Jones sell signal and you heard it first here.

http://finance.yahoo.com/q/bc?s=%5EDJI+Basic+Chart

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

The Rasmussen daily Presidential Tracking Poll for Sunday shows Mitt Romney earning 46% of the vote and President Obama attracting 44% support. Rasmussen was within 0.5% accuracy on both candidates in the 2008 election. Wanna-be socialists are getting into panic mode.

http://www.rasmussenreports.com/public_content/political_commentary/commentary_by_michael_barone/recent_news_could_cause_panic_for_obama_campaign

The socialists are very, very close to turning America into a Welfare State like Greece. Gallup, Rasmussen, and the NY Times found that registered voters are more likely to say Mitt Romney, if elected president, would do a very good or good job of handling the economy than they are to say President Obama would, if re-elected. However if everyone on welfare voted. Obama would win by a landslide and we could become the Obama Socialist Banana Republic of America overnight. See: http://www.staged.com/video?v=x4u



World market this week

Sixteen of Spain’s Banks were downgraded three levels by Moody’s yesterday. Stocks headed for the worst week in six months and Brent fell to this year’s lowest level as China’s economy showed more signs of slowing. Everyone else is afraid to say it but the Dow Jones Industrials and Rails both gave sell signals yesterday just as they did in early August the day the market collapsed last year. This is a world crisis for Socialists in America and abroad.

Greece is starting to have runs on banks as citizens withdraw their Euros before Greece is kicked off the Euro and all the Euro’s are withdrawn and the savings of the Greek people is devalued with worthless Greek currency. The European Central Bank said it stopped lending to some Greek banks to limit its risk as President Mario Draghi signaled the ECB wouldn’t compromise to keep Greece in the euro area. The Greek socialists are predicted to win a ruling majority with the next election. The fear is that people in Italy and Spain will also panic and run on their banks. The government was forced to deny yesterday that clients were also scrambling to withdraw funds from Spain's largest property lender, Bankia.

There are just not enough euro's in circulation in Europe if everyone panics. Even the German banks would have to close. The printing presses would have to spin and the Euro could drop 10%to 20% very rapidly. So people would buy what??? Obama banana republic dollars? It is likely that people will have another chance to unload their gold on India and China.

Risk of multiple crashing world stock markets is very high now. The pall of the Obama 2007-2008 declared worldwide Great Depression grew last month as European exports and consumer demand dropped in March and as the euro region’s spreading fiscal crisis undermined the economy further. Socialists are idiots and will say anything and fraudulently report anything to get the power to steal the wealth of their homeland. Then they take over the news media and shut down the truthful reporters and just have socialist propaganda. The British just took down and discredited the most truthful conglomerate in the world, the one that owns Fox News. Then when the socialists have only the George Soros’ MSNBC/Pravda propaganda machine left they will kill you for reporting what they do.

China has 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=my;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=2y;compare=;indicator=ema(100,200)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;



American Economy

Wall street is beginning to shake now. Hedgefund managers are running scared, so scared no one dares to admit the sky is indeed falling this time. Anything could rock the boat. We are on the cusp of a market collapse similar to last August. The American economy is going nowhere but the MSNBC hype of Jim Cramer suddenly went cold and Jim was running scared the past two nights.

Retail Sales Apr 0.1% down from 0.8% bad

Retail Sales ex-auto Apr 0.1% 0 down from 0.8% bad

CPI Apr 0.0% 0 down from 0.3% deflationary, bad

Core CPI Apr 0.2% flat 0.2% OK

Empire Manufacturing May 17.1 up from 6.6 good

Net Long-Term TIC Flows Mar $36.2B up from $10.1B good

Business Inventories Mar 0.3% down from 0.6% good

NAHB Housing Market Index May 29 up from 25 good

MBA Mortgage Index 05/12 9.2% up from 1.7% seasonal

Housing Starts Apr 717K up from 699K seasonal

Building Permits Apr 715K up from 769K seasonal

Industrial Production Apr 0.6% up from 0.0% adjusted for manipulation

Capacity Utilization Apr 79.2% up from 78.6% good

Crude Inventories 05/12 2.128M down from 3.652M NG

Yesterday

Initial Claims 05/12 372K up from 367K removing Obama bias- Bad

Continuing Claims 05/05 3283K up from 3229K removing Obama bias- Bad

Philadelphia Fed May -5.8 down sharply from 8.5- very Bad

Leading Indicators Apr -0.1% down from 0.3%- very Bad



Market outlook May 18, 2012

A major “Head and Shoulders Sell signal” was give in the NYSE and in both DOW indices. The wave of worldwide investment market crashes is upon us now. Only, news that the American Socialist Regime will be thrown out in November will turn things around because if the American Constitution is changed by the Socialist Regime, there will be no Americans fighting for freedom in the world again. The new Nazis and Communists will start to divide up the world between themselves again and then declare war on each other. Such is the ignorance and stupidity of all socialists. Anyone with knowledge of history and a brain knows that all forms of socialism are economic and social forms of cannibalism that eat the souls of the people they rule.

Selling was broad-based again yesterday on higher volume we have not seen in half a year. We are breaking lows again and a downside even with the safe-haven DOW Industrials and Rails. The DJI is no longer a safe haven. The NYSE begins its plunge too.

http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=6m;compare=;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

The Rails gave a sell signal. The DOW Industrial’s confirming sell signal occurred yesterday. Confirmation means there was never a DOW buy signal since the collapse on August 2, of 2011. The Dow Theory Industrials and Rails sell signal of August 2, 2011 was confirmed again yesterday, and therefore it still holds.

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

We all know that the Obama-Holder regime has destroyed the American economy with his socialist corruption transferring taxpayer money to scam artists, identity thieves, liars, unions and by making many Americans and even our soldiers dependant on food stamps. We are much worse off now with The Obama-Holden regime in 2012 than we were with Bush when The Obama-Holder regime took office. Obama is so simple minded he does not understand that the Robin Hood principle of stealing from the rich to give to the poor only works when there is someone who still makes a profit… an income. If there is no income all Obama can do is spend America into bankruptcy. But once you begin to steal from productive people they refuse to be enslaved so they withdraw from the economy and join John Gault. They live off their cash. Then the socialist system collapses, as did Communism in 1989. If you take their cash and murder the productive people as they did in the USSR, China, and Cambodia the collapse is even faster and there is starvation. America, the wealthiest country in the world could be facing starvation with another four years of simple-minded Obama-Holder regime bumbling. As you can see below, the situation now is very much like it was the first time Obama announced we were in an economic depression so that he could get elected the president of hope and change. Real unemployment more than doubled but the stock market is back up in the stratosphere with the $trillions Obama is handing out to his socialist friends. Do you think we are better off 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 at 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 to 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 is beginning to soar and should be above 40 in a few weeks as markets crash in some countries. A sharp computer sell-off could now trigger huge stop-losses and a plunge below the lows of 2000. The Obama-Holden regime will get even uglier.

http://finance.yahoo.com/q/bc?s=%5EVIX&t=2y&l=on&z=m&q=l&c=

Baltic Dry Index is declining again and less than 10% of its 2008 high. http://www.bloomberg.com/quote/BDIY:IND/chart



Stock market update:

Asian markets were down sharply last night. China down –1.5%, Hong Kong down –1.3%, Singapore down –1.5%, S. Korea down –3.4%, Taiwan down –2.8% Japan down –3 %.

European markets were down half way through their day in a range of –2.4% (Sweden) to +0.2% (Germany).

American market futures are up at about 0.4% in after hour trading at 8:30 AM EST as MSNBC is afraid to tell the America this morning that the Obama-Holden regime is a veritable socialist disaster of despair and decay.