October 23
Breaking 65DayMovingAverage trend lines is very common. Typically a bear market skips downward along
its 65DMA. Breaking the 200DMA is much
more significant and was one of the recent sell signals. The NYSE and Russell 2000 are still below their
65 DMA trend lines. The Nasdaq has
reached it in both in price and cash flow.
The DJI penetrated the 65DMA but its cash flow 65DMA was well
below. The SandP penetrated the 65DMA in
both price and cash flow. To be an
indication of a chartist buy signal they would all have to penetrate and stay
above the 65DMA and then break above the 200DMA. One explanation given for today’s rally on
CNBC closing bell was that the rally was
primarily in weak stocks that had been driven down all year and it was not a
rally of the stronger stocks that recently gave the sell signal. Any stock market rally is an invitation to
sell stocks or go short.
Building Permits Sep 1103K down from 1170K
Initial Claims 10/17 increased to 259K from 255K last week
Continuing Claims 10/10 increased to 2170K from 2158K last
week
FHFA Housing Price Index Aug fell to 0.3% from 0.6% last
month
Leading Indicators Sep fell to -0.2% from 0.1% last month
Caterpillar, the bell weather for the world economy, is struggling
with declining demand. It has slashed its outlook for equipment used in mining
and oil drilling and has cut its forecast for full-year earnings and reaffirmed
its expectation that sales would fall in 2016 for a fourth consecutive year.
If you go back
to this blog when the Benghazi terrorist attack happened you will see we were
the first to point out that a Jewish filmmaker was in no way responsible for
the attack and that his Constitutional rights were violated and he was
illegally imprisoned to create a cover up for the fact that Hilary Clinton was
responsible for the security breach of their Embassy. Hillary cannot lead because she never takes
responsibility for anything because she does not learn from experience.
October
21 On their price basis, all the indices
we follow have stalled at their 65 day moving averages. On their cash flow basis the DJI, the
Russell 2000, and the NYSE have not yet even reached their 65 dma. There has been no breakout over several
days. We predict that intelligent investors
will at minimum liquidate long market positions for cash and build short positions
very soon. Shorting will be very
profitable and Hedge funds will likely join in the shorting as they did in the
past. It is almost November and the bear
market is still on our predicted path to bottom some time between January and
March of 2016. This bear market will be
different from the past because near zero FED rates have resulted in very high
leverage and many past conservative investments could be dragged under. But what if the 65 DMA is broken on the
upside? That is what many people are
hoping for. But with earnings reports
turning into dismal loss reports why would the market go up now?
October 20 Banks are beginning to admit that they have
unwisely invested in the stock market just as they had before the 1929 and 1932
stock market crashes. We now have an
Obama stupid party $18 Trillion dollar national debt and a $4.25 in “stupid
party” FED QE debt. Obama and the stupid
party have spent more than the cost of World War II and have accomplished
nothing except they are bankrupting Social Security and giving away all the
earned wealth of current American workers and seniors. They continue to give away earned wealth to
people who never worked at all or have phony claims of injuries and
disabilities which under the “stupid party” have run up at 400% of the
pre-Obama era. Meanwhile incompetent financial
engineering of mergers and acquisitions have provided thousands of
opportunities for stupid and incompetent politicians and crony capitalists to
ferret away much of America’s wealth in stocks and debt investments which will
soon go belly-up and bankrupt America. That is how the incompetent politicians and
their socialist crony capitalists have set up not just America
Most Americans
can see what Obama and his stupid, lethargic, and incompetent party have done
worldwide. That is why Americans are
angry and fed up with the stupid people who are made professors and then they
give bright students F’s if they don’t write and say the stupid politically
correct things the “stupid party” socialists demand. Today our brightest students have to deliver
the stupid party nonsense to get A’s from the incompetent and stupid
teachers. One stupid politician
pretended she was a Cherokee Indian so she could steal a Harvard professor’s
seat from a real Cherokee. And she is
considered among the most qualified of today’s stupid party politicians who
claim they are helping minorities while they steal the jobs of minorities and actually
have pushed minority poverty back to the levels of 25 years ago.
Home starts
and permits are down almost about 50% from the level in 2006 when the
Obama/Frank Countrywide Corporation liar loans for unqualified home buyers
started to go sour. As a result there
are fewer minorities owning homes now than before the Obama/Frank created their
liar loans. But apartment housing is
doing well because poverty is growing and fewer people can afford a home.
Manufacturing and services peaked two years ago and are
starting down again.
Retail sales have been declining for four years. Yet the “stupid party” declares a new
imaginary economic success every week.
Americans want an intelligent and honest government again.
October
17 In 1964 the pollsters reported that
77% of all Americans thought the American government was mostly to completely
trustworthy. That was mostly due to
President Eisenhower and President Kennedy.
By 2012 it had completely reversed and only 22% of Americans thought the
American government was mostly to completely trustworthy. That was mostly due to President Clinton and
President Obama after Wako, Ruby Ridge, Monika, Hilary abandoning the Libyan Embassy, Obama’s ordering the IRS harassment of
Republicans and Christian fundamentalists, and Obama’s ASA spying on and trying
to frame American journalists and potential opponents such as Governor Christy
. Now it is even worse due to Hilary and
Obama abandoning Americans and our allies abroad to terrorists. The Clintons even build self serving charities funded mostly
by foreigners, many from Communist China and the Mideast .
It has become
obvious from Hispanic primary support, that Trump will take the majority of the
Hispanic vote as things stand today and Hilary will have an historic election
defeat. The American Hispanic community
came to America
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