September 4, Friday will be a down day as many organizations go into cash but pray the October bottom holds. Many advisors still think the USA is immune to the collapse of economies of the developing world, Europe, and the first recession in China since they replaced communism with crony capitalist socialism. We disagree and predict the incompetent Obama administration will put America into a recession under socialist policies that stop fuel pipelines, oppose nuclear energy, and shut down American coal mines.

            We are now in the seasonal period for general construction and new real-estate construction sales.  But once again it is fabricated socialist government propaganda data produced not to inform but as to pretend things are getting better under socialists.

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

            Nonfarm Private Job creation Aug increased 140K, 70K down from 210K last month.   Nonfarm Public/government and wasteful/ crony job creation Aug 33K up from 5K last month.   Total nonfarm Job creation Aug 173K, was not as good as 215K last month, and primarily crony socialist make-work jobs.

 

September 3, 2015  Do not wait for the American economic news to worsen until much of the coming decline is over because frankly this administration has never been truthful and they would never want to be accused of starting the collapse of American stocks by telling the truth.  If you look back a few months you can confirm we reported the manipulation of Chinese stocks at least a month before anyone else and we pointed out the trading volume was manipulated.  We reported that volume has also been fabricated for either or both of two American indices.  While the S&P and the Russell 2000 averages are supposed to be different the volume for the S&P is always exactly 100 times as high as the Russell 2000.   There is no reason they can’t calculate publicly traded volumes correctly.   High speed intra-private transactions should also be recorded to support potential investigations of corporation manipulations.

            We estimate we have about two weeks of TV commentator obfuscation ahead before a second significant downward correction comes into view.   But we will watch that closely.

            September 2, 2015  Our examination of the five American stock exchanges we follow showed the recent (2^nd) minor plunge in prices was on lower volume and while prices took back half the gain from the August 25 to the August 28 level, the cash outflow after August 28 was about 40% of what was seen in the preceding rise from August 25.   That is evidence that the current rally should continue a few more days and perhaps into next week.   On the other hand the analysis of China’s market drop is that it is likely to continue dropping because the bottom did not hold and the rate of cash outflow appears worse.  But the Chinese government manipulates the prices as they wish.  The government is the largest owner in China.