Order Stuffing may have been used to create the Flash Crash of May 6

Order Stuffing may have been used to create the Flash Crash of May 6

Finally justice may prevail. Most of the Wall Street talking heads still lie to investors and say stop orders protect your gains. In reality stop orders guarantee your losses. Periodically the market makers take down their stocks and trigger all the stop orders. On May 6 the flash crash apparently did the same for everyone with any stop orders. It was accomplished by stuffing the system with sell orders long enough for the slow stock exchange computers to incrementally drop the price but not long enough for the exchange to actually sell the stock. Then the orders were rapidly cancelled and replaced with even lower sell orders… and on and on as the market plummeted. Now, finally, some corrupt liberal hedge fund managers may be bankrupted and sent to jail where they belong for almost destroying the free market system and frightening away investors.

Corruption is rampant in Washington now. A congresswoman in Texas was just exposed yesterday for giving all the scholarships she handled to her grandchildren and her office staff who had different last names. Democratic Rep. Eddie Bernice Johnson stole an estimated $31,000 from the Congressional Black Caucus Foundation that way. Today the liberals are hated so much the socialists have decided to call themselves progressives. Progressive was originally the name of the party conservative Republican Teddy Roosevelt created to beat the socialists in both parties of his time. He was an independent political leader.

A poll today in Ohio (where Barack Hussein Obama defeated Hilary) asked whom would they rather have now as president? Bush (who left office with only a 25% approval rating) or Obama. 50% said they preferred Bush, 42% said Obama and 8% were undecided.

People who lack a work ethic tend to live in places where they don't have to do much work for shelter or to keep from freezing in the winter. They don't like the cold where the lazy could freeze to death. They only migrate to colder climates when there are liberal/progressive dominated Christian countries willing to furnish them with food and shelter and an unearned income. This is the primary reason for the immigration problems in the USA and Western Europe. You don't see them migrating to communist countries or theocratic Moslem states. Americans do not owe socialist-liberal/progressive-union-lazy-state/federal government workers, indigents, and perverts a life. They need to create a life of their own. Only by ousting the liberal/progressive democrat-socialists do we end the flow of people who come and end up on welfare or worse yet as a state or federal employee who is a racist that hates people who have a work ethic. For instance this year a racist in the Dept of Agriculture admitted she discriminated against white farmers but no longer discriminates against poor white farmers. They fired her prematurely and then gave her a golden parachute because she did not discriminate against the poor.

World Markets:
US stocks opened sharply higher following reports showing a rebound in China manufacturing. In addition, stronger-than-expected economic growth in Australia helped fuel optimism about the global economy. Asia followed the US market again last night with substantial gains.

Economic Calendar
We are seeing manipulated leftist Obama government statistics again with wide data scatter and swing in corrections as big as the reported changes themselves. Leftists are historically corrupt and manufacture useless statistics primarily for propaganda.

So far this week:
Personal Income Jul increased 0.2% after no improvement the last month
Personal Spending Jul increased 0.4% after no change last month
PCE Prices - Core Jul prices increased 0.1% which is also good as it is not deflation.
All good news but market was down 1.4%
Case-Shiller 20-city house price Index Jun rose 4.2% after rising 4.6% in April… good news. It is believed prices have since weakened. Prices had declined as much as 32% and are now down 28% from their peak.
Chicago PMI Aug declined to 57 from 63 still in positive territory for manufacturing… good news
Consumer Confidence in Aug rose to 53.5 from 50.4 in July… good news.
Minutes of FOMC Meeting 08/10 indicated a higher risk of Japanese type deflation so they bought more worthless bank assets which is equivalent to printing more money to re-inflate.

Yesterday
ADP Employment Change Aug, Employers cut 10,000 jobs in August after adding 37,000 in July. Separately, planned job cuts hit 10-year low in August, as employers shed 34,768, down 17% from the previous month.
Construction Spending Jul, the Institute for Supply Management's (ISM) Index Aug unexpected rise in U.S. manufacturing activity to 56.3 from 55.5 added to earlier optimism over China's strong manufacturing report. Economists were expecting the index to ease. Any number above 50 indicates growth in the sector.
Crude Inventories 08/28 dropped slightly to 3.4M from 4.1M
Auto Sales Aug slumped as the clunker incentive expired. Ford was down 11% in sales from last year. GM took the biggest hit of 24% where you could virtually turn in your riding lawn mower to "Uncle Sap" no questions asked for the discount since the socialist own the company.
Truck Sales Aug were down but Ford continues to gain in market share. Sales are up 27% so far this year.

Today
Sep 2 8:30 AM Initial Claims 08/28
Sep 2 8:30 AM Continuing Claims 08/21
Sep 2 8:30 AM Productivity-Rev. Q2
Sep 2 8:30 AM Unit Labor Costs Q2
Sep 2 10:00 AM Factory Orders Jul
Sep 2 10:00 AM Pending Home Sales Jul

This week yet to come
Sep 3 8:30 AM Nonfarm Payrolls Aug
Sep 3 8:30 AM Nonfarm Payrolls - Private Aug
Sep 3 8:30 AM Unemployment Rate Aug
Sep 3 8:30 AM Hourly Earnings Aug
Sep 3 8:30 AM Average Workweek Aug
Sep 3 10:00 AM ISM Services Aug


Market Outlook Sept 2, 2010
The market rose yesterday on a price surge of 2.4% and with another increase in volume bringing volume further above average (100 DMA). It was evident that bargain hunting started a rally. The market averages look even more like a double bottom formation.

This leftist government must be thrown out in November for the rally to be big. If the socialists maintain even a slight majority it will be impossible to reverse the arrogant unconstitutional redistribution of wealth and obamacare because the socialists will claim they have a mandate to continue.

World Markets
Asian markets were up following the USA again last night. Shanghai up 1.3%, Hong Kong up 1.2%, India up 0.2%, and Japan up 1.5%.

European markets are flat waiting for the USA markets to open, in a range of about -0.1% to +0.1% this morning about half way through their day.

US pre-market futures are flat in the range -0.1% to 0.1% this morning at 8:30 Am.

The only thing we have to fear is fear itself, which now consists of Obama, Gore, Bogoyevitch, Barney, Rangel, Waters and the other leftist crook democrat-socialists.