The socialists have undermined the free Europe that America had established after WWII. Europe is once again decaying rapidly into the chaos of Nationalist vs. Internationalist socialist rivalry of the Hitler-Stalin era. The idiot socialist also run the American government today so there is no longer an America to rescue Europe from the idiot European socialists. Obama would make his college grades public if he did not think it would prove he is the fool people think he is.

New claims for unemployment benefits rose last week for the fourth straight week, which heightens concerns the American labor market recovery is softening further. Also, the latest figures show manufacturing expansion in the US Midwest cooled down sharply in May. The world economy is heading for its third straight mid-year lull as manufacturing output continues to shrink in Europe and slowed in China, while Obama spends investment capital expanding food stamps and puts 50% of Americans (his constituents) on housing allowances.
The US economy grew at an annual rate of 1.9 percent in the first three months of the year, slower than touted by the socialist Obama-Holder regime.  Inflation accounted for 1.7% of the growth.

Former U.S. Secretary of State Condoleezza Rice endorsed Mitt Romney last night, saying he understands the nation’s special place in the world.

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 Obama supporters falsified their data by increasing it 6.7% the way Obama and Putin like to maintain their fraud and myth of socialism.

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

Overpriced Facebook (without a profit) tumbled. The problem was the padding of the pockets of those like socialists George Soros looting the investors. It is a good product that has had its reputation destroyed and may no longer have credible management. The biggest risk is that the founders are already billionaires and can now retire and let the company 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 lower future levels on resistance areas and past gaps in price.

Europe is now feeling the Obama Great Depression that Obama announced to blame President Bush and to frighten his ignorant followers away from free enterprise. Obama said that our free enterprise system was a failure. He tried to say Bush had created a great depression. With real Obama job shrinkage now estimated at 16% and getting worse, Obama creates phony USSR style data to say US unemployment is under 9%. Oil prices decline as the US and the rest of the world shrinks due to Obama type socialist redistribution of wealth from the competent to the incompetent. It is a double killer since the incompetent have no incentive to learn and the competent now have no incentive to invest. So the lazy drop out of school and the hard working give up on socialism and spend their money traveling the world instead of investing. Both the top and the bottom essentially withdraw from the labor pool leaving the people in the middle to keep the economy going.

For the first time in five-and-a-half years of regular tracking the Rasmussen Reports that voters now trust Republicans more on five of the 10 major issues regularly tracked by Rasmussen Reports, Democrats more on only two, and they're tied on three.
http://www.rasmussenreports.com/public_content

World market this week

Brent crude dropped below $100 a barrel for the first time in eight months indicating the world economy is contracting sharply as entrepreneurs shut down due to corrupt socialism.  In the USSR they throw entrapreneurs in prison for not making their payments to Putin.  Wall Mart was told they needed a $2million contribution for Putin to show up and open a store for them.

Italy’s joblessness rose to 10.2%, the highest in 12 years amid a deepening slump in Europe.

Governor Nils Bernstein said that Denmark’s central bank won’t provide extra liquidity support to the country’s lenders because he says the problem there is flagging demand not the supply of bank capital that is holding back economic growth. But is Nils another socialist fool who cannot see beyond his nose? Socialist Nils Bernstein is about as smart as a wooden fence post.

In Athens and Spain it is already too late for them because the problem of “runs on their banks” has already begun. People in Athens and Spain are afraid they will lose their Euro’s and be paid by their banks with new worthless local socialist Greek and Spanish currencies. Nils Bernstein does not realize that once the Euro begins to collapse people will run to the Danish banks to get their cash out too. Cash is becoming king because when credit markets collapse or freeze up again cash will be king. Stock markets will then collapse again as they did just after presidential candidate Obama paniced the world by saying that President Bush (with only 5% unemployment) had put America in an economic depression. No one since the great depression ever said something as stupid as socialist Obama said at that time.

Mario Draghi, president of the European Central Bank is no fool and warned Thursday that the structure of the euro zone had already become “unsustainable” and criticized socialist political leaders who he said have been slow to respond to the sovereign debt crisis. “The configuration (of socialist government expansion) we had for 10 years, which was considered sustainable, has been shown now to be unsustainable,” Mr. Draghi told a committee of the European Parliament in Brussels. The problem with socialist welfare states is that government provides the jobs and socialist jobs have no value because they are “make believe” work for which government employees make believe they work. Only very ignorant Obama and his ignorant supporters have no clue because they do not even understand the collapse of the USSR and East Germany in 1989.

Idiot Nobel economics laureate Christopher Pissarides said wealth creating Greeks would benefit at the expense of citizens on welfare and people with lifestiles unfamiliar with work, were the country to exit the euro. The people who do not work for a living have no money. “It’s the wealthy who will benefit because that’s who’s able to move their money abroad,” he said. “Wealthy Greeks have already done it, whereas the small saver is not going to do it.”   Of course Obama is the first Nobel Peace laureate to use drones to assassinate his personally selected American and foreign enemies so why should one expect Christopher Pissarides to know anything about economics?

Spanish renewable-energy companies that once got Europe’s most wasteful subsidies have been abandoned by the Spanish government, and now must sell and work abroad or perish. That means they will perish like Obama’s Solyndra (the socialist's corrupt method for funneling taxpayer money to his socialist campaign funds).

A Greek departure from the currency is inflicting “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%.

China’s slowdown is rippling through Hong Kong, with the city’s mainland sales at the slowest pace since 2009. China's markets have declined for more than a year now and may be nearing 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

This Week

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

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

Pending Home Sales Apr -5.5% collapsed from 4.1%


Yesterday

Challenger Job Cuts May are 66.7 up from 11.2%

ADP Employment Change May 127K vs 119K corrected for Obama manipulation  -still very low (half of what is needed)

Initial Claims 05/26 386K up from 370K corrected for Obama manipulation-very bad

Continuing Claims 05/19 3260K no change from 3260K corrected for Obama manipulation-no change

GDP - Second Estimate Q1 1.9% down from 2.2% -very bad since inflation was 1.7% of it.

GDP Deflator - Second Estimate Q1 1.7% 1up from 1.5% wipes out the expansion.

Chicago PMI for May was52.7 down from 56.2 shows sharp contraction in manufacturing.

Crude Inventories 05/26 2.213M vs. 0.883M says supply is increasing and oil prices can continue to fall.

Today

Nonfarm Payrolls May 69K down from 115K

Nonfarm Private Payrolls May 82K down from 130K even after 33K Obama manipulation

Unemployment Rate May 8.2% up from 8.1%

Hourly Earnings May 0.1% up from 0.0% even after 0.1% Obama manipulation

Average Workweek May 34.4 down from 34.5

Personal Income Apr 0.2% down from 0.4% even after 0.1% Obama manipulation

Personal Spending Apr 0.3% constant 0.3% even after +0.1% Obama manipulation

PCE Prices - Core April 0.2% no change 0.2% negates the income increase

ISM Index May 53.5 down from 54.8 manufacturing slow down

Construction Spending Apr 0.3% no change.


Market outlook June 1, 2012

The socialists have finally undermined the free Europe that America had established after WWII. Europe is once again decaying rapidly into the chaos of Nationalist vs. Internationalist socialist rivalry of the Hitler-Stalin era. The idiot socialist also run the American government today so there is no longer an America to rescue Europe from the idiot European socialists. It took the USSR 60 years to implode. Free Europe was re-established in 1945 and it will collapse by 2015 at the current rate or just 70 years. With socialists running America since 2008 American will collapse by 2018 (just 10 years) at Obama’s $1.5+ trillion annual rate of wealth redistribution. Obama’s banana republic of America will want to end term limits for Obama so he can rule like his buddies in Cuba and Venezuela.  The only hope is if Americans eject Obama in November. Obama would make his college grades public if he did not think it would not prove he is the fool people think he is.

The DJI is no longer a safe haven. The NYSE has continued 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 perpetrate 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-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=

Baltic Dry Index is collapsing again after collapsing 90% already since the Obama-Holder 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 0%, Hong Kong down –0.4%, Singapore down -1%, Taiwan down –2.7%, Japan down –1.2 %.

European markets were plummeting half way through their day in a range of -1% to –2.8% for Germany.

American market futures are down about –1.1% in after hour trading at 8 AM EST.