Tuesday Mario Gambelli downgraded Apple, and MSNBC/PRAVDA/Jim Cramer of Mad Money recommended that you sell Apple now and buy it back below $560/share. The stock market is now far above levels of the DOTCOM bubble. Corporations are more efficient now… not because they are improving their efficiency but because the weak are being either eaten by the strong or the weak are simply going out of business. The low PE is because the Obama Great Depression is first killing of the weak companies that go infinite in PE before they disappear. Socialism is initially thinning the herd with cannibalism… it is not growing a healthier herd. The profitability of the remaining American corporations today is because the weak are disappearing. Socialism is hollowing out the economy. It is all Obama Cannibalistic Economics or Obama CE. We only grow strong with socialism by eating our young but then there is no future in that.

We grow strong in Africa with CE by killing and eating our last elephant herd but then we starve to death. Human cannibalism still existed in Africa and Indonesia well into the 20th century. One of the heirs to the Rockefeller fortune disappeared in Indonesian cannibal country and was believed eaten by the cannibals. Remember socialism is a form of economic cannibalism. Socialists are EC’s (economic cannibals). They eat their young with lies, theft, and Ponzi schemes that steal from the future. They steal from every productive person today and then they borrow from the productive people of the future. QE is just another of the CE schemes that exist and that Obama and Bernanke are using that will bankrupt the USA for the first time in 230 years if we don’t dump Obama and socialism this year.


Gold and silver began their movement upward. The world socialist Quantitative Easing (QE) Ponzi scheme does nothing but keep interest rates at a record low so that higher debt can be afforded now by dissolute socialists so that socialists:

can take for themselves more welfare today,

more free cell phones for the children of the Obama voting block,

more free cheese and meat for the Obama voting block

more fraudulent disability payments for able bodied people in the Obama voting block

and more Solyndra crony socialist corrupted capitalism for the Obama campaign contributors.

The S&P 500 tapped its highest mark since May 2008 before bouncing into the red on Tuesday.

Dell Inc. third-quarter revenue missed estimates and Dell cut its full-year profit outlook as competition from tablets and an anemic global economic recovery drags down personal computer sales.

The U.S. Court of Appeals in Washington ruled Tuesday and struck down the Obama’s cross-state air pollution rule, saying the EPA overstepped its legal authority and issued standards that were examples of inept crony capitalism deals with First Solar. The court sided with power companies and mining groups challenging to the measure, which caps emissions in more than two dozen states. The rule would end coal mining in America just as China shifts from petroleum to inexpensive coal.

A new Rasmussen reports national telephone survey shows that among those who are self-employed or own their own business, Mitt Romney enjoys a 20-point lead. Fifty-six percent (56%) favor Romney, and 36% prefer the president.

Rasmussen: 24% think their house will be worth less five years from now
47% say media bias bigger problem than campaign contributions, 42% disagree. A new Rasmussen Reports national telephone survey shows that 42% of Likely U.S. Voters would vote for the Republican in their district’s congressional race if the election were held today, while 41% would choose the Democrat instead.

Voters say Ryan more qualified to be president than Biden.

http://www.rasmussenreports.com/public_content/politics/obama_administration/daily_presidential_tracking_poll

http://www.rasmussenreports.com/

Facebook director Peter Thiel sold most of his stake bringing his profits to more than $1 billion, after restrictions on insider sales ended. Now that he has his money he is getting out.

Coca-Cola Hellenic Bottling Co. posted a 15 percent decline in second-quarter profit as poor weather and general economic decline slowed demand.

Urban Outfitters Inc. stock price rose 17 percent in Tuesday New York trading after second-quarter profit rose only 1.2 percent.

Facebook last week unlocked the first of five insider sale restrictions scheduled during its first year as a public company. Facebook shares fell to a record low after insiders could sell 271.1 million shares for the first time since the initial public offering. Facebook will face five times that pressure when another 1.44 billion shares are freed up through November.

Barnes & Noble Inc. euphoria has evaporated as it becomes clear that Microsoft is not interested in them and the largest U.S. bookstore chain will continue to struggle to avoid the fate of the music and movie stores.

Treasuries fell, extending a four- week decline, after Der Spiegel magazine reported the European Central Bank is considering a plan to use the Obama’s quantatative easing Ponzi scheme to cap on euro-area bond yields to contain the debt crisis. But Germany disputes the report.

Lowe’s the second-largest U.S. home-improvement retailer, reported net income dropped 10 percent. Chief Executive Officer Robert Niblock is cutting more than 500 jobs this year after Lowes closed 27 U.S. stores and canceled plans for new locations. HomeDepot stores clearly have been quite empty too so it is hard to understand where their housing industry optimism comes from. As long as the socialists maintain liar loans and Fannie and Freddie’s big salaries for Obama socialist appointees the housing depression will continue.

Once Obama adopted the Japanese failed QE policy he put America on a socialist disaster course that caused the 65% collapse in the Japanese stock marker and began the perpetual depression that socialism eventually brings to every nation that resorts to socialism.

World market this week
Greek Prime Minister Smaras told a German paper he wants more time from international leaders to complete reforms for his indebted country as a way to soften budget cut blows on society.

The world’s container lines can’t raise freight rates fast enough to cover soaring fuel prices as persistent overcapacity works against the industry.

Japan swung to a trade deficit as Europe imports plummet.

Indonesia idled about 70 percent of tin-smelting capacity in its biggest producing region amid a three-month bear market, curbing the world’s biggest exports and setting the stage for a global shortage.

Tianjin district China announced a multi-year target of $236 billion for industrial investment, joining a similar plan by Chongqing amid local efforts that try to help reverse China’s growth slowdown.

The second shoe of the Obama Worldwide Great Depression is beginning to fall. It is energy related as hydrocarbons are taxed to reduce demand and instead the socialists destroy the margin of profitability of the nation. Britain unexpectedly posted a budget deficit in July as corporation-tax receipts plunged. The shortfall, which doesn’t even include the government support for banks, was $878 million compared with a surplus of $4.48 billion pounds a year earlier, the Office for National Statistics said in London Tuesday. Tax revenue fell 0.8 % and corporation tax plunged 19.3 %. Government spending rose 5.1 %.

Japan vehicle sales will drop as much as 20 percent next quarter as the Japanese subsidies expire.

Germany’s largest utilities are shunning cleaner-burning natural gas because it’s more costly, while the collapsing cost of carbon permits means there’s little penalty for burning coal. Wind and solar projects, central to Germany’s plans to reduce nuclear energy and cut the release of heat- trapping gases, can’t produce electricity around the clock.

Average asking prices in England and Wales fell a record 2.4 percent from July, when values declined 1.7 percent, the operator of Britain’s biggest property website said in London Monday.

Bank of Japan Governor Masaaki Shirakawa, who set the nation’s first inflation goal six months ago to halt a decade-long quantitative easing struggle with deflation, has failed to produce the inflation craved by exporters.

Protests erupted in China and Hong Kong over the weekend as Japanese activists landed on an island in the East China Sea claimed by both countries, intensifying a dispute between Asia’s two biggest economies.
China’s stocks fell to the lowest level this month after real-estate prices rose in the largest number of cities in 14 months.

Emerging markets will continue to suffer 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

Emerging market composite indicates it is breaking down through the lows.
http://finance.yahoo.com/echarts?s=%5EGSPTSE+Interactive#symbol=^gsptse;range=5y;compare=;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

German stocks are faltering below the recent high that is now close to the March level which is still below the high of 2011 and 2012: Choose 2 or 5 years.
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 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
The market is testing recent highs on very weak volume. The S&P and the NYSE and the DOW Rails all failed to break old highs and failed to reverse their existing sell signals. The recent market rally was due to hedge funds unwinding bets against European stocks at the fastest pace in three years, speculating that European socialist policy makers will join the Obama debt Ponzi scheme to increase debt. That means the hedge funds have stopped buying stocks to cover their shorts and are ready to short again.

The VIX is showing that a bear market is highly probable now and the VIX will have a long way to go up until the VIX is above 30 where bear markets normally end.

This Week
Aug 21 2:00 PM FOMC Minutes 7/31

Aug 22 7:00 AM MBA Mortgage Index 08/18

Aug 22 10:00 AM Existing Home Sales Jul

Aug 22 10:30 AM Crude Inventories 08/18

Aug 23 8:30 AM Initial Claims 08/18

Aug 23 8:30 AM Continuing Claims 08/11

Aug 23 10:00 AM FHFA Housing Price Index Jun

Aug 23 10:00 AM New Home Sales Jul

Aug 24 8:30 AM Durable Orders Jul

Aug 24 8:30 AM Durable Orders -ex Transportation

Market outlook August 22, 2012
Americans need to give the Democrat Socialists the boot out of all federal offices if the Obama Greatest Depression Ever on Earth is going to be stopped. There has to be a limit on the maximum permissible Federal/State/Local Government’s spending percentage of the GDP.

is is the quiet before the storm with the VIX under 14 and extreme complacency. Most of Europe takes all of August as a vacation so it is a lost month every year.

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 DJ Rails continues to say sell even as people seek the false security of the DJ Industrials. The Divergence you see is the classic symptom of the Dow theory bull’s trap.
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;

12,000 Federal workers are reported getting government pensions exceeding $100,000/yr for life.

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 NASDAQ is near its march level now.
http://finance.yahoo.com/echarts?s=QQQ+Interactive#symbol=qqq;range=my;compare=;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

The VIX is showing record lows not seen since just before the panic of 2007 indicating that a bear market is highly probable now and will have a long way to go up until the VIX is 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 says world trade is plunging toward a depression low. Clearly Obama Solyndra corruption and gangster fast and furious socialism and Obama’s Goldman Sachs crony capitalism will only end in further collapse of production, collapse of small businesses and then the round up of the hated 2%.
http://www.bloomberg.com/quote/BDIY:IND/chart
Stock market update:

Asian markets were down last night. China down -0.5%, Hong Kong down –1.1%, India down – 0.2%, S. Korea down –0.4%, Japan down –0.3%.

European markets are down half way through their day in a range of –0.4% to +1.1%.

American market futures are flat at about -0.3% in after-hour trading at 8 AM EST. This indicator does not statistically correlate with anything.