September 11, is another day that lives in infamy. More people died in that Jihad attack than died in the sneak attack at Pearl Harbor that brought America into WWII. Today on Squawk Box, Ken Langone said that “If Obama wins we (America) will hit rock bottom by 2016. ”But he said we would be strong again. Dick Grasso said we just hit bottom. He said the USA can’t even comply now with Sarbanes Oxley and will lose our credit rating if we do not get the spending under control. Both said the teacher’s unions are destroying the public educational system in America and most of the teachers know that and want the unions reformed.

U.S. technology companies have pushed their dividends to the highest level on record; a signal to investors that profit growth in the industry is slowing.

Federal Reserve easing cannot spur a faltering recovery it can only extend a recession by first distorting investment from housing and business growth to the lucrative financing government debt. Second the debt extension makes debt financing the number one government focus to avoid national in solvency. Anyone who thinks big government solves problems is an idiot. Big government debt financing becomes the focus of banking to the detriment of the economy.

In what is usually a strong month for funds buying gold, the price of gold and silver rallied again yesterday. Speculation about more money printing by central banks helped to spur interest in precious metals, which are regarded by many investors as a buffer against inflation. But is demand for the underlying metal as high as the demand for the stocks? The impoverished in India are some of the biggest buyers.

The U.S. Treasury Department said it will sell most of its stake ($18 Billion) in insurer AIG, making the government a minority investor for the first time since it rescued the company

Apple Inc, is scheduled to release the new product on Sept 13 in the United States. The problem is can Apple accelerate sales enough to maintain its growth rate. If last year you grew 100% from 100 to 200, this year you need to grow twice as much (200 growth from 200 to 400). We believe that is not possible because they only are including re-treads of Steve Job’s creation.   Apple’s reliance on this single product leaves Cook little margin for error. The Chinese cloned the iPhone 5 called the called the "Goophone i5", in advance. Jim Cramer said do not buy Apple now, buy it at $560 (56 times ten).

BP is in advanced talks to sell a group of oilfields in the Gulf of Mexico to Plains Exploration & Production Co.

Mitt Romney would drop government spending to 20% of the GDP as it was under Reagan. Only by controlling the spending will America get the debt and the percentage of freeloaders under control. We need a Constitutional limit on taxes. There were no income taxes of any kind until more than 100 years after the constitution was written.

The Rasmussen Reports daily Presidential Tracking Poll for Sunday shows President Obama attracting support from 50% of voters nationwide, while Mitt Romney earns 45% of the vote. The Obama announced Great Depression would get a lot deeper if it turns out that way. Three percent (3%) prefer some other candidate, and three percent (3%) are undecided.

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

World market this week
China’s Communist Party is threatened by the economic slowdown that costs jobs.  M2, the broadest measure of money supply, rose 13.5 percent in August from a year earlier a rate that would support hyperinflation if allowed to continue.

Cost-cutting by Japanese and Chinese companies is dragging on wages, resulting in weaker consumer demand and a stronger case for creating inflation.

From the $2.3 trillion pumped into the U.S. by the Fed since 2008 to record-low interest rates in the euro zone, U.K. and Japan, nothing has prevented the world’s economy from slowing this year. Foreign-exchange traders are signaling they expect little improvement any time soon, and that’s a change from the past.

The rebound in China’s inflation, excess capacity in some industries and banks’ bad debt risks from past monetary easing underscore the potential cost of ramping up stimulus efforts.

Hobbled by the economic slowdown, Europe's automobile market has shrunk, causing some firms to close their factories. The influx of imported cars in China are piling on top of already high inventories and causing price wars.

"I can’t be optimistic that investor sentiment will improve rapidly and the world’s economy will pick up," Yoshisada Ishide, who oversees $14 billion as the manager of the biggest mutual fund at Daiwa SB Investments Ltd. in Tokyo,

Germany’s Federal Constitutional Court in Karlsruhe will decide whether to support or suspend the 500 billion-euro ($639 billion) European Stability Mechanism on Sept. 12.

Emerging markets. The American markets are essential to the recovery of the world.

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 continued breaking down through the recent 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 continues to test old resistance levels.

The Alternative minimum tax is not being adjusted for inflation. According to the IRS, if Congress doesn’t act to prevent the $92 billion tax increase from inflation, the number of households facing the alternative tax after the fiscal cliff would increase to 32.9 million from 4.4 million.

Precious metals exchange-traded funds fared well in August as funds and investors anticipate the Obama Ponzi scheme will continue to flood the world with dollars.

Yesterday
Consumer Credit Jul plunged -$3.3B after previously increasing at a rate of $9.8B

Today
Sep 11 8:30 AM Trade Balance Jul

This Week
Sep 12 7:00 AM MBA Mortgage Index 09/08

Sep 12 8:30 AM Export Prices ex-ag. Aug

Sep 12 8:30 AM Import Prices ex-oil Aug

Sep 12 10:00 AM Wholesale Inventories Jul

Sep 12 10:30 AM Crude Inventories 09/08

Sep 13 8:30 AM Initial Claims 09/08

Sep 13 8:30 AM Continuing Claims 09/01

Sep 13 8:30 AM PPI Aug

Sep 13 8:30 AM Core PPI Aug

Sep 13 12:30 PM FOMC Rate Decision Sep

Sep 13 2:00 PM Treasury Budget Aug

Sep 14 8:30 AM Retail Sales Aug

Sep 14 8:30 AM Retail Sales ex-auto Aug

Sep 14 8:30 AM CPI Aug

Sep 14 8:30 AM Core CPI Aug

Sep 14 9:15 AM Industrial Production Aug

Sep 14 9:15 AM Capacity Utilization Aug

Sep 14 9:55 AM Mich Sentiment Sep

Sep 14 10:00 AM Business Inventories Jul

Market outlook Sept 11, 2012
Rasmusen predicts an Obama win in November.  Moodys said they are preparing to reduce the US credit rating if America does not get control of spending.   Latest economic indicators show we are again losing jobs faster. The DJI-DJT is diverging bearishly again. The EU will use the QE Ponzi scheme that put Japan into a continuous recession and a bear stock market for the past twenty years and has Japan’s debt approaching 180% of their GDP. The US will decline to Japans level in less than 10 years. We do not see the QE2 Ponzi scheme any less addictive than cocaine. But as we said before the Japanese markets rose 250% before people realized they had borrowed 20years of their future with their Ponzi scheme. Japan’s stock market today is lower than it was in 1984.

There still has been no stock market buy signal but if this run-up continues it could happen within the month. The stock market recently hit old highs and failed to break out. During the 2008 campaign Senator Obama said America was in a depression and Senator Dodd followed that irresponsible claim by causing a run on a California bank that collapsed the bank. Obama likes to say the stock market has risen since he took office but the truth is the market collapsed the most just after the morons held their 2008 convention but fell the fastest starting election day when the morons were elected. It cratered one month after Obama was sworn in but the stock market collapse correlated with when Wall Street realized the morons would win the election. The stock market is roughly a six month leading indicator but the morons don’t know that either. If the morons look good this week it would mean the market is ready to collapse again in anticipation of a depression of FDR’s length and depth.

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;

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 it shot up on half normal volume and still 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 back down in La-La Land. The low VIX normally precedes a sell-off. Once that starts the VIX needs to go up above 30 until bear markets normally end. The driving force this year is the election and whether the morons win or lose.

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

The Baltic Dry Index says world trade is now at a depression low. Look at 5 years and you see it got worse after Obama was elected.

http://www.bloomberg.com/quote/BDIY:IND/chart

Stock market update:
Asian markets were down last night. China down -0.7%, Hong Kong up 0.2%, India up 0.5%, S.Korea down -0.2%, Japan down -0.7%.

European markets are down half way through their day in a range of +0% to –0.5%.

American market futures are up at about 0.4% in after-hour trading at 8 AM EST. This indicator does not statistically correlate with anything.