Yesterday the bull trap opened all the way. The U.S. is now third behind Australia and Canada in a ranking of countries with the highest percentage of citizens who feel that people who create wealth deserve their wealth. Only 58% of Americans surveyed in GlobeScan’s 2012 study of income inequality said they “agree” or “strongly agree” that rich people in the U.S. deserve their wealth they earned. That explains why the indigents are flocking to get their share as socialists take over the last three free-enterprise governments in the world.

Whoever Americans elect as president in November is almost certainly going to choose at least one and maybe more new members of the Supreme Court — in addition to hundreds of other life-tenured federal judges, all of whom will be making decisions about our lives for decades to come.


1. Justice Scalia just turned 78

2. Justice Kennedy will turn 78 later this year

3. Justice Breyer will be 76 in August

4. Justice Ginsburg is 81.

5. Justice Roberts just joined the socialists on Obamascare..

So for anybody who is thinking of not voting because your favorite didn’t get nominated, or writing in a candidate, just imagine this if Obama wins in November. Supreme Court Justice Eric Holder

Amazon.com suffered a 96% plunge in second-quarter earnings amid acquisition charges and disappointing sales growth.

Facebook continues to show no earnings growth and share prices were down over 30% now since the IPO. It will take a few years to completely dissipate the $100 Billion people threw into the Facebook pit. The joke is they the investors believe they have good management. The IPO was nothing but a Ponzi scheme where sales were restricted so that demand could only drive prices through the roof.

Apple has about 30% to 50% to fall over the next year as they rapidly lose to competition now that Steve Jobs is gone. The employees all know it is happening. Check for yourself and see that insiders at Apple have been selling their stock as fast as they can for over a year because they know it is overpriced at half the current price. They have not been holding Apple stock long. They buy the options at 0 or very little and sell the stock as soon as they possibly can. They were dumping everything already back under $350 in March last year just before the stock skyrocketed. They are still selling as fast as they can. Why would you buy a stock at a price that all the employees of Apple think is ridiculous? That is the power of MSNBC/Pravda and that is how they stay in business and keep their advertisers. The companies that MSNBC pumps up… finance socialism and are Obama’s big campaign contributors. The advertisers on MSNBC are supporting socialism and totalitarianism. Apple still has about 25% to fall. Check out the insiders soon because the socialists will eventually remove or fudge this information just as they no longer accurately report trading volume of stock markets since 2003 because it allowed us to accurately compute investor cash flows.
http://finance.yahoo.com/q/it?s=AAPL+Insider+Transactions

Starbucks missed earnings expectations in the second quarter and lowered its fourth-quarter estimate.

The Bull trap opened yesterday and the bulls are charging into it.

The socialists run Government Motors and the big banks now. Bank of America was a great free enterprise company until Obama hounded their last entrepreneur president out and installed a socialist friend of Obama. That is the reason the Big Banks are corrupt and stink.

Government Motors is run by socialists now for the unions who take their ridiculous pensions at age 50 while the shareholders who have taken haircuts. Obama wants to nationalize GM and a few of the biggest banks and make the takeovers complete.

The Rasmussen Reports daily Presidential Tracking Poll shows Mitt Romney stuck in a dead heat with Obama. http://www.rasmussenreports.com/public_content/politics/obama_administration/daily_presidential_tracking_poll

World market this week
Gu Kailai, wife of ousted Politburo member Bo Xilai, was accused of “intentional homicide” by poisoning British citizen Neil Heywood in a case that’s shaken the Communist Party months before the recent leadership transition.

The glut in the shipping fleet has pushed new vessel prices to eight-year lows and caused a 49 percent plunge in first-half orders at China’s more than 1,500 shipbuilders. It’s also put smaller yards into bankruptcy and hit earnings at larger players.

Chinese cities begin to take on enormous debt. Changsha, the capital of Hunan province, a failing regional government, will spend 829.2 billion yuan ($130 billion) on 195 projects, which include an airport and subway lines. It sounds like the other 193 projects involve government waste and corruption and can not be reported. Shen Jianguang, Hong Kong-based chief Asia economist for Mizuho Securities Asia Ltd., said in a note today. “With the central government’s tight controls on local government lending previously, there has been widespread panic among local governments in regard to the recent downturn.”

Sands China Ltd., the Hong Kong listed Las Vegas company, fell to the lowest level in seven months after it reported a 40 percent drop in second-quarter profit.

Thailand’s central bank signaled the economy is caught in a global slowdown as it lowered the country’s growth and inflation forecasts.

Telefonica SA fell the most in more than two years after suspending its dividends, cutting a revenue forecast and slashing compensation for top executives in its most drastic response to Spain’s debt crisis.

European Central Bank President Mario Draghi said policymakers would do whatever it takes to preserve the euro.

Beyond its banks, Spain now has to deal with failing regional governments. After the region of Valencia formally requested a bailout, rumors that several others, including Catalonia and Murcia, spooked investors as expectations that Madrid will have to shoulder an even larger debt load.

Emerging markets faltered. All world markets will suffer now unless Obama is given the heave-ho. http://finance.yahoo.com/echarts?s=^BVSP+Interactive#chart1:symbol=^bvsp;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefine

Germany faltering below the recent high: Choose 2 or 5 years. The DAX can’t even keep up with the DJI!
http://finance.yahoo.com/echarts?s=%5EGDAXI+Interactive#chart2:symbol=^gdaxi;range=2y;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on

The Swiss Market is testing moving averages. It gave a sell signal last year.
http://finance.yahoo.com/echarts?s=%5ESSMI+Interactive#chart1:symbol=^ssmi;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined


American Economy
This Week

FHFA Housing Price Index May 0.8% same as last months 0.8%

The Commerce Department said Wednesday that sales of new homes fell 8.4% last month from May’s 369k rate to a 350K rate in Jun

MBA Mortgage Index 07/21 was 0.9% down sharply from 16.9% last month.

Crude Inventories 07/21 rose 2.717M even as prices plummet due to a world economic slowdown.

Yesterday

Initial Claims 07/21 355K down from 386K good

Continuing Claims 07/14 3304K up from 3300K bad

Durable Orders Jun 1.6% unchanged from 1.6%

Durable Orders - ex Transportation Jun -1.1% way down from 0.8% very bad

Pending Home Sales Jun -1.4% way down from 5.9% very bad

Today

Jul 27 8:30 AM GDP-Adv. Q2

Jul 27 8:30 AM Chain Deflator-Adv. Q2

Jul 27 9:55 AM Michigan Sentiment - Final Jul


Market outlook July 27, 2012
Yesterday the bull trap opened all the way. Yesterday wasn’t even a breakout yet as markets are only at their moving averages now. Cash and precious metals are a better choice than being fully invested in stocks right now until it is abundantly evident Obama and Holder will be out of office.

Examine the last 5 years of the NYSE. Obama could easily take America into a profoundly deeper depression breaking 2009 lows if he is re-elected.
http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=5y;compare=;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

The Dow Theory Industrials and Rails sell signal of August 2, 2011 still holds. The Rails failed again to meet even the last shoulder of the head and shoulder sell signal.
http://finance.yahoo.com/echarts?s=%5EDJT+Interactive#symbol=^djt;range=5y;compare=^dji;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

The market sell signal is also seen in 3-month market cyclic data. Notice that yesterday wasn’t even a breakout.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 now showing the bear market has started but the VIX indicates the market still has a long way to go until the VIX rises above 30 where bear markets normally end.
http://finance.yahoo.com/q/bc?s=%5EVIX&t=5y&l=on&z=l&q=l&c=

The Baltic Dry Index is already anemic and now is falling again. World trade has now almost completely collapsed with just having Obama around, without tariffs that were the blame for the collapse during FDR’s socialist experimentation that resulted in the last Great Depression. Clearly it is the corruption of gangster socialism and its crony capitalism, not rigorous free enterprise, that always ends in collapse of production and then economic depression.
http://www.bloomberg.com/quote/BDIY:IND/chart

Stock market update:
Asian markets were up last night. China up 0.1%, Hong Kong up 2%, Singapore down –0.2%, Taiwan up 2.2%, Japan up 1.5%.

European markets were mixed half way through their day in a range of +0.7% to -0.6%

American market futures are up about 0.2% in after-hour trading at 7 AM EST.