Marxist-socialism is the opiate of the asses. The malaise of Obama incompetence and his FED Ponzi Scheme pervades the free world. The FED knows the stock market will likely collapse in a few days with or without FED action. It makes no sense for the FED to get blamed for the impending Obama Ponzi collapse when in a month or two they can announce something new and take credit for the stock market rebound that will occur with or without the FED once Obama is ejected out of office. The American economy continues to sag. Wednesday, the Obama dictatorial executive fines imposed on Christian institutions went into effect as Obama violates the American constitution by fining Christian hospitals that refuse the Obama dictatorship’s order that they perform abortions and provide contraceptives. This is not just Obama withholding payments for regular services… this is fining people for their religious beliefs as well (per day and per hospital employee) and putting all Christian charitable organizations out of business.

Only Christian church organizations are being harassed no Moslems or Hindus are affected by Obama as Obama now has thousands of IRS agents calling and continuously harassing Christian churches across America that either do not support abortion or do not support gay marriage. It is becoming apparent now that the Catholic Church will sue Obama all the way to the Supreme Court. Black Christian Churches warned Obama on Tuesday that they would not support him if his dictatorial executive order harassment continues.

Obama’s stagflation pain index is now over 14%.

In America’s 230-year history free enterprise has never gone bankrupt. Free enterprise erases failed ideas such as socialism in a regenerative creative process. Just as Obama blames Bush for everything… the socialists always blame capitalism for the destruction the socialists spread. The USSR survived and oppressed their citizens for about 70 years. The USSR’s most popular and successful leaders were Yeltsin and Gorbachev who put an end to the rule of the socialists and broke up their “evil empire.”

The Federal Reserve said Wednesday that the economy is losing strength and repeated a pledge to expand the Obama Ponzi scheme to stimulate growth if the job market doesn't show sustained improvement. Isn’t (economy is losing strength) the same as (doesn't show sustained improvement)? The FED makes no sense; they are just dodging the bullet. The stock market and economy are going into final convulsions now until Obama is ejected.


Time Warner Inc.'s earnings declined 33% in the second quarter as film and publishing revenues fell.

GM sales dropped 6 pct, Ford sales down 4 pct.

DreamWorks second-quarter earnings slumped 63%.

Shares of Facebook slid 6.2% Tuesday and 3.8% Wednesday as investors continue to worry about decelerating user growth, lackluster earnings and its ability to sustain its rich valuation.

Apple slumped 0.7% while the DOW fell only 0.25% Wednesday.

Electronic Arts posted a deeper first-quarter loss on an adjusted basis than it did the year before, an adjusted loss of $130 million, or 41 cents a share.

The WSJ Morning MarketBeat Monday said, “Nobody thought earnings season would be quite this bad, and if companies are struggling, it will likely be another blow for an already weak jobs market.”

The U.S. Fed and European Central Bank face a critical test this week amid heightened expectations that they are moving toward new coordinated Ponzi schemes to tackle fragility in the global economy with their usual unintended Ponzi consequence of a complete collapse.

Investors continued to pull money out of equity mutual funds in the first half of this year at a high pace relative to the two previous years. At the same time the equities market has become more illiquid and cannot support rapid in or out flows without massive volatility. The Investment Company Institute said $55 billion exited in the first six months this year, compared to $24.6 billion in the first six months of 2010, and $13.6 billion the first six months last year. We are warning that we have been in a bear market since August 2011.

The Rasmussen Reports daily Presidential Tracking Poll shows Mitt Romney stuck in a 47% to 44%dead heat with Obama. http://www.rasmussenreports.com/public_content/politics/obama_administration/daily_presidential_tracking_poll

World market this week
Bloomberg said gold seen gaining in London on speculation about monetary easing accelerating stagflation.

Indonesia’s stagflation quickened to over 10% for a second month in July, as its neighbors lower interest rates even as declining exports threaten growth. Stagflation is the sum of inflation and unemployment.

U.K. manufacturing shrank the most in more than three years in July as export orders slumped, indicating the economy’s recession continued to deepen at the start of the third quarter.

BMW the world’s biggest maker of luxury cars reported its first drop in quarterly operating profit (-19%) in three years as the world economy slumps.

Indian stocks swung between from gains to losses as Goldman Sachs cut its growth forecast for the second time in two months. Half of India was under an electricity blackout for several days due to lack of infrastructure.

Signs of economic weakness are emerging out of Asian tigers South Korea and Taiwan as the slowdown in key trading partner China takes a toll on the export-driven nations.

Toshiba Corp. reported Tuesday that it swung into a net loss in the fiscal first quarter as restructuring costs and the high yen outweighed growth in its energy-related infrastructure business.

UBS said it would start legal proceedings against exchange operator Nasdaq OMX Group after the Swiss bank's second quarter was hit by a big loss from the Facebook stock-market debut

Economic confidence in the 17-nation euro area fell to 87.9 from 89.9 in June… more than economists forecast to the lowest in almost three years in July, suggesting the economy’s slump extended into the third quarter as governments struggled to tame the debt crisis. The Euro fell to $1.22.

China’s volatility indexes are increasing according to Bloomberg which tracks US and other market volatility. That is a sign that the bull trap is beginning to close on all world stock markets and the bears know Obama-Bernanke are running a Ponzi scheme.

In spite of miss reporting by MSNBC that Emerging markets recovered the faltered at recent highs which are well below the March level which is well below the high of 2012. 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 which is well blow the March level which is well below the high of 2012: 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. It is at a new high for 2012 but well below the 2011 high.
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
Pending Home Sales Jun -1.4% way down from 5.9% very bad

GDP-Adv. Q2 1.5% adjusted down from Obama’s original 2%+ estimate

Chain Deflator-Adv. Q2 1.6% (6.4%/yr) which is higher than the growth rate that says the recession continues. Obama Stagflation = 6.4 +8.2 = 14.6%
Michigan Sentiment - Final Jul 72.3 up slightly from 72.0 last month.

Yesterday
Personal Income Jun rose 0.5% or at a 6% annual rate- does anyone actually believe this Obama report. If 10 % of Americans got a raise this past year they would have gotten a 60% raise to make it a 6% raise for the entire US population. We would expect personal spending to go up about 0.5% too.

Personal Spending Jun was flat at 0.0% after a -0.1% decline in May. That makes no sense if the average American had a 0.5% increase in income.

PCE Prices - Core producer prices Jun rose 0.2% after rising 0.1% in May indicating the Fed goal of almost 2.5% annual inflation.

Employment Cost Index Q2 up 0.5% on top of a 0.4% in Q1

Case-Shiller 20-city price Index May down -0.7% after down -1.9% in April. The Obama news said home prices rose when in truth they dropped again.

Chicago PMI Jul at 53.7 up from 52.9 indicating manufacturing may be recovering from the recent decline.

Consumer Confidence Jul rose to 65.9 from the recent low of 62.7

Today
ISM Index Jul fell for July fell to 49.8. American manufacturing contracted in July for a second month, reflecting a drop in orders spreading the Obama malaise of incompetence. Egypt had seven plagues for its transgressions. America got Obama and that was more than enough for the economy.

MBA Mortgage Index 07/28 dropped to 0.2% from 0.9% bad for the housing glut

ADP Employment Change Jul 163K down from 179K

Construction Spending Jun 0.4% 0down from 0.9% means construction is down which would be smart considering the overhang in housing.

Crude Inventories 07/28 -6.522M much higher than 2.717M, oil prices under pressure by oversupply. Also means tourism has declined

FOMC Rate Decision Jul

This Week
Aug 2 7:30 AM Challenger Job Cuts Jul

Aug 2 8:30 AM Initial Claims 07/28

Aug 2 8:30 AM Continuing Claims 07/21

Aug 2 10:00 AM Factory Orders Jun

Aug 3 8:30 AM Nonfarm Payrolls Jul

Aug 3 8:30 AM Nonfarm Private Payrolls July

Aug 3 8:30 AM Unemployment Rate Jul

Aug 3 8:30 AM Hourly Earnings Jul

Aug 3 8:30 AM Average Workweek Jul

Aug 3 10:00 AM ISM Services Jul


Market outlook August 2, 2012
Exchange volume doubled when the market turned down on Wednesday. SEC investigators’ attention was diverted to unusually sharp moves in 140 stocks shortly after the opening bell. The New York Stock Exchange said it was reviewing the trades where trading volume was unusually high in the first half-hour. Investors suspected price manipulation was used to trigger stop orders and thus devastate cautious investors in those stocks. This game is played by first advising investors to put a stop sell order in 10% below their current stock prices in certain high flying stocks that MSNBC’s Jim Cramer and others recommend. When enough investors follow that advice it becomes profitable to put a big sell order in and when the stock quickly drops 10% to 12% the manipulator reverses to a buy order of a smaller dollar amount and drives the market up with all the cautious investor left with 10% losses and the manipulators with their 10% as gains. Knight Capital Group Inc. (KCG) called it a “technical issue” that was affecting its systems and their selected 150 U.S. stocks swung more than 10 percent down and back up today. Well, KCG must know the manipulation they did so it is actually 150 stocks. The SEC only noticed about 140 stocks that were price manipulated. Looks like KCG is due for a big lawsuit from hoodwinked investors and the SEC.

It appears that the stock market will drop in 2012 starting roughly the same week that it dropped 10+% last year. Compare what GLD did when stocks dropped last August. To do that, right click and change the date range from “200 days” to “Past Year” and see what gold did. This is a good way to plot your stocks together.
http://stockcharts.com/freecharts/perf.html?DTD,EXT,EPS,EES,EZY,ROI,GLD

People forget that the DJI is not by itself the famous stock market indicator. The DJR must confirm the DJI for there to be a buy signal or sell signal. The DJI and DJR confirmed a sell signal together in August 2011and the DJR remains confirming that sell signal today. The DJI is the last “safe” place bulls go to reduce risk before the entire stock market collapses. Therefore the DJI is biased bullish and needs the DJR for balance. The DJI bull trap opened all the way on Friday. Tuesday wasn’t a breakout of even the March high much less the 2011 high. The DJ Rails continues to say sell even as people seek the safety of the DJ Industrials.
http://finance.yahoo.com/echarts?s=%5EDJT+Interactive#symbol=^djt;range=6m;compare=^dji;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

Cash and precious metals are a better choice now than being fully invested in stocks until it is abundantly evident Obama and Holder will be out of office. Bonds will collapse when the FED Ponzi scheme collapses. Obama, Geithner, and Bernanke are running a Federal Ponzi Scheme now to make Treasuries appear attractive so they can finance a $1.2Trillion per year debt which will bankrupt the USA if they are not thrown out first in November. Corporations are cash rich now because they are hoarding cash because the collapse of the US treasuries will leave America without any cash. There is only credit, gold, and silver available in America because few people hold cash today. And in fact most corporations do not actually have any cash, they just have a cash balance in a bank account of a bank which will be bankrupt when this Obama, Geithner, and Bernanke Ponzi scheme collapses.

The NYSE is much more representative of the US economy than are the DOW indices. Examine the last 5 years of the NYSE. It shows that Obama may be taking 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 fell and is showing that the bear market has not started yet and the VIX indicates the market has a long way to go down 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 down last night. China down -0.6%, Hong Kong down -0.7%, S. Korea down –0.6%, Japan up 0.1%.

European markets were up half way through their day in a range of +0.7% to –0.2%

American market futures are up about 0.4% in after-hour trading at 6:30 AM EST. This indicator does not statistically correlate with anything.