Central banks of Asia and South America have raised their FED rates aggressively for a number of months. India has done it 8 times in the last 12 months. Brazil has already hiked it to 11%. China has also been hiking its rates for more than a year. The People's Bank of China said raised its one-year lending rate to 6.31% from 6.06%, effective last Wednesday the fourth time in six months. In the pas, six months of rising rates would have triggered a bear stock market. In the past it was said that you cannot fight the FED and when rates go up for two quarters that is the sign that the stock market will contract. In the past the stock market reacted 6 months in advance to the economy so that profits were peaking when the market was starting to decline and the market bottomed in 2009 before the economy turned around. If the stock market remains a leading indicator then we would expect good earnings reports now if the market was peaking. They also say do not fight the tape and react too soon.
German bonds fell for a third week as the European Central Bank raised interest rates to avoid inflation. Portuguese and Greek yields rose as and bond values fell as Portugal seeks a bailout from the European Union. Portugal failed to stem a surge in borrowing costs, even as it followed Greece and Ireland in asking the EU for a financial assistance package estimated at $115 billion. Inflation is quite low at less than the desired 2.5%. Silver is up 500% in the last 10 years. But if there were the FED goal of 2.5% inflation per year it would take 65 years for inflation to catch up. So clearly the people buying silver and gold now are expecting hyperinflation that Germany had before WWII. Japan has had about 1% inflation for 30 years and that is a greater risk than inflation getting to 5% per year. That would require 33 years or about six business cycles for people who buy silver now to get their money back if silver is now peaking. 30 to 65 years wait implies it is extremely advisable to liquidate silver, gold, and other inflation hedges before the FED rate hikes start in the USA. You know that if there is any inflation over 2.5% they plan to raise rates at we are at about there now.
Germany’s 10-year yield increased to 3.48 percent the most since Aug. 2009. Yields on two-year notes rose to 1.92% percent, the highest since December 2008. That will put more pressure on Germany to stop any further bailouts of the PIIGS.
The ECB's key interest rate charged banks is now 1.25%, up from 1% previously. In contrast, at the FED’s meeting, the target range for the federal funds rate was kept at between 0 percent to 0.25 percent and the discount rate was kept at 0.75 percent. The FED is still tipping towards a continuation of the $600 billion bond buying program through the end of June and a holding pattern on interest rates although Americans are becoming worried that Obama’s infatuation with the Greek health care system and their size of government is beginning to worry even the federal reserve. We believe that when the fed announces the end to QE2 they will say it was fait acompli…. already done so the economy will not react to it. That means QE2 should be phased out before this June.
The new members of congress want Americans to bite the bullet and get the adjustments behind us and to shrink that part of government that has become a “pretend job” mill for people who do not believe in a work ethic. They recently gave over $18Billion to Obama’s be-happy supporters for bogus discrimination in not getting a fair share of government farm handouts in the past. Many Americans have never taken a handout and wonder how Obama be-happy supporters could possibly think they have not ripped off America enough, when they are the only people in America who regularly get handouts.
CNN/Pravda has too Obama supporters as spokespersons. It seems all the Obama thinkers come from the Mid-East, India, and Indonesia now. Those areas of the world have the king of government Obama likes. They work together there and have such a good standard of living and so little violence according to Obama. Here is a portion of their CNN discussion from Saturday. “
Amar C. Bakshi: Does this potential shutdown prove our government is broken? If so, what should be done to fix it? Fareed Zakaria: I think it proves that our political system is broken - the political parties are broken. You can see that most vividly on the Tea Party. The Tea Party’s constituency, or its base, clearly seems to be more interested in them not actually doing a deal than in them doing a deal. But they are one segment of the country. Unless they believe that they should have the ability to - by some kind of dictatorial fiat - impose their will on the rest of the country, then they’re going to have to give and that’s the part that seems to be lost here.” It seems both the Jihadists and Lunatic Left do not like the Tea Party.
When Obama had both houses of Congress he used his dictatorship to force unaffordable Obamacare down the throats of working Americans so that his “be-happy” don’t have to work and can have the best health care in the world while they live off the people who pay taxes. Note that most Obama appointees cheated on their taxes. So half the socialists do not believe in work and the other half cheat on their taxes so they don’t mind paying taxes. In 2006 Obama opposed raising the debt limit but now he says that is irresponsible.
World Markets:
Under Jimmy Carter, gold rose to over $800/oz. But by 1999 gold fell back below $290/oz again. Now it is about $1470/oz. We need to warn you now to liquidate gold and silver when it has run up, not after it drops quickly back to about $400 and $8 respectively.
Canadian job hiring took a pause.
Ireland's ratings were lowered again. Inflation in China and India is not yet in control. Yet Japan and the USA are able to keep
Inflation in India and China is getting out of limits. Gasoline and fuel oil prices doubled under Obama but he and Bernacke say inflation is less than 2.5%. Only morons still believe that.
US Market Highlights
Latest reports
Data is adjusted for Obama’s obvious manipulation of data but not possible outright falsification like the socialists did in the USSR
Initial new unemployment Claims 04/02 were 386K virtually unchanged from 388K last week and twice as bad as job creation. , 1-% socialist manipulation removed.
Continuing Claims 03/26 at 3741K up from last weeks 3714K 0.5% socialist manipulation removed
Consumer Credit Feb $7.1B up from $5.0B, 7% socialist manipulation removed
Wholesale increased again this month by 1% meaning that if sales do not pick up then production will be cut and jobs will be lost.
This week
Apr 12 8:30 AM Trade Balance Feb
Apr 12 8:30 AM Export Prices ex-ag. Mar
Apr 12 8:30 AM Import Prices ex-oil Mar
Apr 12 2:00 PM Treasury Budget Mar
Apr 13 7:00 AM MBA Mortgage Index
Apr 13 8:30 AM Retail Sales Mar
Apr 13 8:30 AM Retail Sales ex-auto Mar
Apr 13 10:00 AM Business Inventories Feb
Apr 13 10:30 AM Crude Inventories 04/09 -
Apr 13 2:00 PM Fed's Beige Book Apr
Apr 14 8:30 AM Initial Claims 04/09
Apr 14 8:30 AM Continuing Claims 04/02
Apr 14 8:30 AM PPI Mar
Apr 14 8:30 AM Core PPI Mar
Apr 15 8:30 AM CPI Mar
Apr 15 8:30 AM Core CPI Mar
Apr 15 8:30 AM Empire Manufacturing Apr
Apr 15 9:00 AM Net Long-Term TIC Flows Feb
Apr 15 9:15 AM Industrial Production Mar
Apr 15 9:15 AM Capacity Utilization Mar
Apr 15 9:55 AM Mich Sentiment Apr
Market Outlook April 11, 2011
The world markets are now holding their breath waiting to see if the markets plunge. If the Republicans back down on their miniscule government cuts the world thinks it is doomed to perpetual socialist self indulgent stupidity like we see in the Greek union riots.
The stock market is continuing to test its head and shoulders now. The markets all appear to be topping out. To us it looks like the 47dma is no longer a support level but instead has become the resistance level for a topping trend (head and shoulders) line.
S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=
We think the next stock market support level will be down at Nov 4, 2010 levels.
World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. That means more than half of the stock market rise from the 2009 lows is unsupportable and could evaporate. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Asian markets were down last night. China down -0.3%, Hong Kong down -0.4%, India down –1%, and Japan down -0.5%.
European markets are down this morning in a range of about 0% to -0.5% half way through their day.
US pre-market futures are up at about 0.3 % at 7:30 AM EST.
Monday, April 11, 2011
Friday, April 8, 2011
The government shutdown now hangs on Socialist-democrats insisting that the government abortions of black babies be funded.
The government shutdown now hangs on Socialist-democrats insisting that the government abortions of black babies be funded. By the end of 2011 Obama will have the US national debt exceeding the GDP just like they have in Greece, Ireland, and Portugal. Government funding of abortion is a form of racial cleansing. But to many it is worth it to have jihadist funding NPR and government funding the abortion of black babies. Many people believe the government is complicit in murdering babies. This blog does not condone the US government being involved in people’s private maters by subsidizing abortions of primarily living black babies or supporting jihadist who want to kill all Americans regardless of race or national origin.
Government parties have lost ground in negotiations that lasted through early Friday morning. Arriving at the Capitol, Reid said he was disappointed that a deal that seemed within reach remains elusive, and seemed confounded as to the Republicans' ultimate goal. He believes National Public Radio should be funded even though they were caught on camera ready to accept funding from the jihadist Moslem Brotherhood and were an unofficial arm of the democrat-socialist party. Reid also thinks government funding of abortions was good because it eliminates unwanted children. The fact is that most of the government funding is for abortions of black babies and the legislation to fund those abortions was not approved until after research showed most already were black babies and funding it would increase that percentage. So that is why racist gave the socialist democrats the support for it.
If Japan’s interest rate rises just 0.2% on their national debt then 70% of their national income would go just to paying the interest on their national debt.
Portuguese bonds fell and the cost of insuring the nation’s debt rose to a record and the Euro weakened after Moody’s Investors Service said a bailout is inevitable. The interest Portugal pays on 10-year bonds climbed to 8.76%.
US Auto & Lt Truck Salesfor March are a week overdue as rumors of a slowdown loom due to Japanese parts shortages. Obama does not want to release the disappointing numbers.
A US government shutdown is looming.
Oil is at a 30-Month High.
World Markets:
Under Jimmy Carter, gold rose to over $800/oz. But by 1999 gold fell back below $290/oz again. Now it is about $1470/oz.
Ireland's ratings were lowered again. Inflation in China and India is not yet in control. Yet Japan and the USA are able to keep
Inflation in India and China is getting out of limits. Gasoline and fuel oil prices doubled under Obama but he and Bernacke say inflation is less than 2.5%. Only morons still believe that.
US Market Highlights
Latest reports
IS Manufacturing Index Mar dropped to 61.2.from 61.4
Construction Spending Feb fell -1.4% or -2.5% depending on whether last -0.7% or the manipulated -1.8% is correct. When the numbers look bad and they take spending numbers they receive and move them backward that is corruption because in another week they will have to adjust the present numbers as well. Either always compare final numbers a week later or compare them at the end of the month. They do but not and could have a 5-wk interval last month and a 3 or 4 week interval this month.
Auto and truck sales still not being reported.
ISM Services industry index fell to 57.3 from 59.7
Fed Minutes indicate the FED is continuing down the path Japan took to perpetual socialist style perpetual economic depression.
MBA Mortgage Index 04/01 fell again -2.0% after falling -7.5% last month as housing is in a full double downturn.
Crude Inventories 04/02 rose 1.952M after rising last month in spite of the highest April gasoline prices in the history of America. The last time that happened the economy was in a state of free-fall by the end of the year.
Yesterday
Data is adjusted for Obama’s obvious manipulation of data but not possible outright falsification like the socialists did in the USSR
Initial new unemployment Claims 04/02 were 386K virtually unchanged from 388K last week and twice as bad as job creation. , 1-% socialist manipulation removed.
Continuing Claims 03/26 at 3741K up from last weeks 3714K 0.5% socialist manipulation removed
Consumer Credit Feb $7.1B up from $5.0B, 7% socialist manipulation removed
Today.
Apr 08 10:00 Wholesale
Market Outlook April 8, 2011
The world markets are now holding their breath waiting to see if the markets plunge as the Obama socialists follow the Japanese socialist plan which is government spending into a PIIGS type oblivion while Germany and Britain are belt tightening their governments and raising interest rates so that money has some value. If the Republicans back down on their miniscule government cut the world thinks it is doomed to perpetual socialist self indulgent stupidity like we see in the Greek union riots.
The stock market is continuing to test its head and shoulders now. The markets all appear to be topping out. To us it looks like the 47dma is no longer a support level but instead has become the resistance level for a topping trend (head and shoulders) line.
S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=
We think the next stock market support level will be down at Nov 4, 2010 levels.
We need to warn you now to liquidate gold and silver when it has run up, not after it drops quickly back to about $400 and $8 respectively.
World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. That means more than half of the stock market rise from the 2009 lows is unsupportable and could evaporate. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Asian markets were up last night. China up 0.7%, Hong Kong up 0.4%, India down –0.7%, and Japan up 1.8%.
European markets are up this morning in a range of about 0.2% to 0.8% half way through their day.
US pre-market futures are up at about 0.3 % at 6:00 AM EST.
Government parties have lost ground in negotiations that lasted through early Friday morning. Arriving at the Capitol, Reid said he was disappointed that a deal that seemed within reach remains elusive, and seemed confounded as to the Republicans' ultimate goal. He believes National Public Radio should be funded even though they were caught on camera ready to accept funding from the jihadist Moslem Brotherhood and were an unofficial arm of the democrat-socialist party. Reid also thinks government funding of abortions was good because it eliminates unwanted children. The fact is that most of the government funding is for abortions of black babies and the legislation to fund those abortions was not approved until after research showed most already were black babies and funding it would increase that percentage. So that is why racist gave the socialist democrats the support for it.
If Japan’s interest rate rises just 0.2% on their national debt then 70% of their national income would go just to paying the interest on their national debt.
Portuguese bonds fell and the cost of insuring the nation’s debt rose to a record and the Euro weakened after Moody’s Investors Service said a bailout is inevitable. The interest Portugal pays on 10-year bonds climbed to 8.76%.
US Auto & Lt Truck Salesfor March are a week overdue as rumors of a slowdown loom due to Japanese parts shortages. Obama does not want to release the disappointing numbers.
A US government shutdown is looming.
Oil is at a 30-Month High.
World Markets:
Under Jimmy Carter, gold rose to over $800/oz. But by 1999 gold fell back below $290/oz again. Now it is about $1470/oz.
Ireland's ratings were lowered again. Inflation in China and India is not yet in control. Yet Japan and the USA are able to keep
Inflation in India and China is getting out of limits. Gasoline and fuel oil prices doubled under Obama but he and Bernacke say inflation is less than 2.5%. Only morons still believe that.
US Market Highlights
Latest reports
IS Manufacturing Index Mar dropped to 61.2.from 61.4
Construction Spending Feb fell -1.4% or -2.5% depending on whether last -0.7% or the manipulated -1.8% is correct. When the numbers look bad and they take spending numbers they receive and move them backward that is corruption because in another week they will have to adjust the present numbers as well. Either always compare final numbers a week later or compare them at the end of the month. They do but not and could have a 5-wk interval last month and a 3 or 4 week interval this month.
Auto and truck sales still not being reported.
ISM Services industry index fell to 57.3 from 59.7
Fed Minutes indicate the FED is continuing down the path Japan took to perpetual socialist style perpetual economic depression.
MBA Mortgage Index 04/01 fell again -2.0% after falling -7.5% last month as housing is in a full double downturn.
Crude Inventories 04/02 rose 1.952M after rising last month in spite of the highest April gasoline prices in the history of America. The last time that happened the economy was in a state of free-fall by the end of the year.
Yesterday
Data is adjusted for Obama’s obvious manipulation of data but not possible outright falsification like the socialists did in the USSR
Initial new unemployment Claims 04/02 were 386K virtually unchanged from 388K last week and twice as bad as job creation. , 1-% socialist manipulation removed.
Continuing Claims 03/26 at 3741K up from last weeks 3714K 0.5% socialist manipulation removed
Consumer Credit Feb $7.1B up from $5.0B, 7% socialist manipulation removed
Today.
Apr 08 10:00 Wholesale
Market Outlook April 8, 2011
The world markets are now holding their breath waiting to see if the markets plunge as the Obama socialists follow the Japanese socialist plan which is government spending into a PIIGS type oblivion while Germany and Britain are belt tightening their governments and raising interest rates so that money has some value. If the Republicans back down on their miniscule government cut the world thinks it is doomed to perpetual socialist self indulgent stupidity like we see in the Greek union riots.
The stock market is continuing to test its head and shoulders now. The markets all appear to be topping out. To us it looks like the 47dma is no longer a support level but instead has become the resistance level for a topping trend (head and shoulders) line.
S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=
We think the next stock market support level will be down at Nov 4, 2010 levels.
We need to warn you now to liquidate gold and silver when it has run up, not after it drops quickly back to about $400 and $8 respectively.
World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. That means more than half of the stock market rise from the 2009 lows is unsupportable and could evaporate. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Asian markets were up last night. China up 0.7%, Hong Kong up 0.4%, India down –0.7%, and Japan up 1.8%.
European markets are up this morning in a range of about 0.2% to 0.8% half way through their day.
US pre-market futures are up at about 0.3 % at 6:00 AM EST.
Thursday, April 7, 2011
Bernacke/Obama want America to walk into the Japanese low interest trap of perpetual recession and economic stupidity.
AM Radio Stations will be forced out of business by high levels of interference mostly from power lines but also new sources. We are filling our world with microwaves so children can spend their money on game applications and other cool stuff that is creating a school system of dunces taught by the dunces of the last generation. Apple’s stock is now valued higher that the rest of the world’s stocks, (put together) outside of the stocks traded in America. And apple is rich primarily due to the addictions of novelty and games. Having an Apple product has become a status symbol among young and old dependents in the ever-growing world of dunces who will need the government to take care of them.
Character and values are no longer taught in our schools. A child’s character is 90% determined before they enter high school and by the 6th grade for the best and brightest students. Good character traits (virtues) were behaviors like being responsible, hard-working, conscientious, honest, dependable, prudent, respectful, considerate, fair, diligent, confident, reliable, responsive, trustworthy, and decisive. Developing a student with personal character, people skills, and leadership skills (virtues) was thought to be teaching students to take care of themselves. The education of the Founding Fathers focused on the highest human traits and with those traits the student could do anything and each one could educate his or herself. Today High School students must know more than their teachers because most teachers are such open minded leftists, their brains fell out long ago.
NASDAQ 100 Undertakes ‘rare’ rebalancing. This is called fraudulent market appreciation 101, the way all long term stock indices are doctored to deceive investors into thinking stocks do much better than is the actual case. When a stock has a big run-up the index is very high but is at a high risk of losing that gain when that over inflated stock goes back down. So what they do is they add rising stocks and remove stagnating companies before they decline. Apple is so high and still rising and they do not want the risk of seeing the index go back down.
What do they do? The WSJ says that the Nasdaq is reducing the weighting of Apple in a “rare rebalancing” of the Nasdaq 100 Index. To do that they effectively raise all the other stock values with a multiplier while cutting the apple share weighting multiplier. Yes, they rebalance by raising the values of the weak (using the weighting to hide it) so when apple drops in percent of the index, the index does not decline. It is indeed outright fraud and the SEC has been letting them do it. Later they will claim a 7% annual market gain since 1945 when without the legal fraud it would be about 4%. It is false advertising and investors need to be aware that the stock market is no more truthful than a used car dealership.
Bernacke/Obama want America to walk into the Japanese low interest trap of perpetual recession and economic stupidity.
It starts by spending the nation’s way into debt until as in Japan the debt exceeds the national income and it is impossible to pay down without national pain.
That spending spree is only possible by keeping the interest rate close to zero as they do in Japan where the people’s savings are taken by their government and the people get paid next to nothing in interest.
Eventually the debt is so large the government is trapped and has to avoid higher interest rates because it cannot afford that annual cost of the interest.
This makes an extremely unstable situation and if the Japanese were to stop saving and buy assets instead, the interest rate would soar and the value of the yen would plummet.
Obama socialists must be ejected along with the other socialists before the socialists give us perpetual economic recession as the communist Eastern Block had before they went bankrupt. The Japanese socialists have had a recession for 30 years now.
The Treasury Department predicts the U.S. will hit its $14.294 trillion debt limit no later than May 16. Government could already begin to shut down this weekend.
If Japan’s interest rate rises just 0.2% on their national debt then 70% of their national income would go just to paying the interest on their national debt.
A shortage of parts from disaster-ridden Japan is very likely to force Toyota to shut down its North American factories and impact roughly 25,000 workers. It’s not clear how long Toyota will be forced to close its facilities.
Warren Buffet is depicted was having become irrational and mentally unstable on GE/MSNBC/Pravda.
Portuguese bonds fell and the cost of insuring the nation’s debt rose to a record and the Euro weakened after Moody’s Investors Service said a bailout is inevitable. The interest Portugal pays on 10-year bonds climbed to 8.76%. Moody’s cut its rating on Portugal’s debt for the second time in three weeks, saying another downgrade may follow and the winner of elections in June will probably tap Europe’s bailout fund with “urgency.” The downgrade “is further evidence of the sovereign decay in the area. The European Central Bank will probably raise interest rates this week to contain inflation.
US Auto & Lt Truck Salesfor March are a week overdue as rumors of a slowdown loom due to Japanese parts shortages. Obama does not want to release the disappointing numbers.
A US government shutdown is looming.
Oil just hit a 30-Month High.
World Markets:
Ireland's ratings were lowered again.
China's stock market prices are in a triangle formation and will breakout probably within a week. At this point we believe the breakout will be down because most of the world is tightening belts now and letting interest rats rise to slow demand for debt. Higher rates will put extreme pressure on countries like the "PIIGS", Portugal, Ireland, Iceland, Greece, and Spain that have done little to balance their budgets. Spain will be the next to fall and socialist unions may riot. The contagion is spreading in the EU. Japan is now a walking debt ridden economic zombie because they took the communist position that everyone should be given a job for life. Unfortunately that leads to nuclear reactors and aircraft problems that kill people because there is no incentive to do a good job when the job is guaranteed.
US Market Highlights
Latest reports
IS Manufacturing Index Mar dropped to 61.2.from 61.4
Construction Spending Feb fell -1.4% or -2.5% depending on whether last -0.7% or the manipulated -1.8% is correct. When the numbers look bad and they take spending numbers they receive and move them backward that is corruption because in another week they will have to adjust the present numbers as well. Either always compare final numbers a week later or compare them at the end of the month. They do but not and could have a 5-wk interval last month and a 3 or 4 week interval this month.
Auto and truck sales still not being reported.
Yesterday
ISM Services industry index fell to 57.3 from 59.7
Fed Minutes indicate the FED is continuing down the path Japan took to perpetual socialist style perpetual economic depression.
MBA Mortgage Index 04/01 fell again -2.0% after falling -7.5% last month as housing is in a full double downturn.
Crude Inventories 04/02 rose 1.952M after rising last month in spite of the highest April gasoline prices in the history of America. The last time that happened the economy was in a state of free-fall by the end of the year.
This week
Apr 07 08:30 Initial Claims
Apr 07 08:30 Continuing Claims
Apr 07 15:00 Consumer Credit
Apr 08 10:00 Wholesale
Market Outlook April 7, 2011
The world markets are now holding their breath waiting to see if the markets plunge as the Obama socialists follow the Japanese socialist plan which is government spending into a PIIGS type oblivion while Germany and Britain are belt tightening their governments and raising interest rates so that money has some value. If the Republicans back down on their miniscule government cut the world thinks it is doomed to perpetual socialist self indulgent stupidity like we see in the Greek union riots.
The stock market is continuing to test its head and shoulders now. The markets all appear to be topping out. To us it looks like the 47dma is no longer a support level but instead has become the resistance level for a topping trend (head and shoulders) line.
S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=
We think the next stock market support level will be down at Nov 4, 2010 levels.
We need to warn you now to liquidate gold and silver when it has run up, not after it drops quickly back to about $400 and $8 respectively.
The success of President Ronald Reagan was due to his selection of intelligent advisors not socialists and gold fell rapidly from $800/oz to $200/ox and stayed very low for almost 20 years. Silver fell back then to $3/oz. President Reagan was a supply-side advocate and ended the artificial shortages that president Jimmy caused in everything from toilet paper, gasoline, silver, and gold.
World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. That means more than half of the stock market rise from the 2009 lows is unsupportable and could evaporate. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Asia seems to be waiting to see if the market breaks up or breaks down at this resistance point.
Asian markets were flat last night. China up 0.1%, Hong Kong down -0.1%, India down –0.1%, and Japan up 0.1%.
European markets are flat this morning in a range of about -0.2% to 0.2% half way through their day.
US pre-market futures are flat at about -0.1 % at 7:00 AM EST.
Character and values are no longer taught in our schools. A child’s character is 90% determined before they enter high school and by the 6th grade for the best and brightest students. Good character traits (virtues) were behaviors like being responsible, hard-working, conscientious, honest, dependable, prudent, respectful, considerate, fair, diligent, confident, reliable, responsive, trustworthy, and decisive. Developing a student with personal character, people skills, and leadership skills (virtues) was thought to be teaching students to take care of themselves. The education of the Founding Fathers focused on the highest human traits and with those traits the student could do anything and each one could educate his or herself. Today High School students must know more than their teachers because most teachers are such open minded leftists, their brains fell out long ago.
NASDAQ 100 Undertakes ‘rare’ rebalancing. This is called fraudulent market appreciation 101, the way all long term stock indices are doctored to deceive investors into thinking stocks do much better than is the actual case. When a stock has a big run-up the index is very high but is at a high risk of losing that gain when that over inflated stock goes back down. So what they do is they add rising stocks and remove stagnating companies before they decline. Apple is so high and still rising and they do not want the risk of seeing the index go back down.
What do they do? The WSJ says that the Nasdaq is reducing the weighting of Apple in a “rare rebalancing” of the Nasdaq 100 Index. To do that they effectively raise all the other stock values with a multiplier while cutting the apple share weighting multiplier. Yes, they rebalance by raising the values of the weak (using the weighting to hide it) so when apple drops in percent of the index, the index does not decline. It is indeed outright fraud and the SEC has been letting them do it. Later they will claim a 7% annual market gain since 1945 when without the legal fraud it would be about 4%. It is false advertising and investors need to be aware that the stock market is no more truthful than a used car dealership.
Bernacke/Obama want America to walk into the Japanese low interest trap of perpetual recession and economic stupidity.
It starts by spending the nation’s way into debt until as in Japan the debt exceeds the national income and it is impossible to pay down without national pain.
That spending spree is only possible by keeping the interest rate close to zero as they do in Japan where the people’s savings are taken by their government and the people get paid next to nothing in interest.
Eventually the debt is so large the government is trapped and has to avoid higher interest rates because it cannot afford that annual cost of the interest.
This makes an extremely unstable situation and if the Japanese were to stop saving and buy assets instead, the interest rate would soar and the value of the yen would plummet.
Obama socialists must be ejected along with the other socialists before the socialists give us perpetual economic recession as the communist Eastern Block had before they went bankrupt. The Japanese socialists have had a recession for 30 years now.
The Treasury Department predicts the U.S. will hit its $14.294 trillion debt limit no later than May 16. Government could already begin to shut down this weekend.
If Japan’s interest rate rises just 0.2% on their national debt then 70% of their national income would go just to paying the interest on their national debt.
A shortage of parts from disaster-ridden Japan is very likely to force Toyota to shut down its North American factories and impact roughly 25,000 workers. It’s not clear how long Toyota will be forced to close its facilities.
Warren Buffet is depicted was having become irrational and mentally unstable on GE/MSNBC/Pravda.
Portuguese bonds fell and the cost of insuring the nation’s debt rose to a record and the Euro weakened after Moody’s Investors Service said a bailout is inevitable. The interest Portugal pays on 10-year bonds climbed to 8.76%. Moody’s cut its rating on Portugal’s debt for the second time in three weeks, saying another downgrade may follow and the winner of elections in June will probably tap Europe’s bailout fund with “urgency.” The downgrade “is further evidence of the sovereign decay in the area. The European Central Bank will probably raise interest rates this week to contain inflation.
US Auto & Lt Truck Salesfor March are a week overdue as rumors of a slowdown loom due to Japanese parts shortages. Obama does not want to release the disappointing numbers.
A US government shutdown is looming.
Oil just hit a 30-Month High.
World Markets:
Ireland's ratings were lowered again.
China's stock market prices are in a triangle formation and will breakout probably within a week. At this point we believe the breakout will be down because most of the world is tightening belts now and letting interest rats rise to slow demand for debt. Higher rates will put extreme pressure on countries like the "PIIGS", Portugal, Ireland, Iceland, Greece, and Spain that have done little to balance their budgets. Spain will be the next to fall and socialist unions may riot. The contagion is spreading in the EU. Japan is now a walking debt ridden economic zombie because they took the communist position that everyone should be given a job for life. Unfortunately that leads to nuclear reactors and aircraft problems that kill people because there is no incentive to do a good job when the job is guaranteed.
US Market Highlights
Latest reports
IS Manufacturing Index Mar dropped to 61.2.from 61.4
Construction Spending Feb fell -1.4% or -2.5% depending on whether last -0.7% or the manipulated -1.8% is correct. When the numbers look bad and they take spending numbers they receive and move them backward that is corruption because in another week they will have to adjust the present numbers as well. Either always compare final numbers a week later or compare them at the end of the month. They do but not and could have a 5-wk interval last month and a 3 or 4 week interval this month.
Auto and truck sales still not being reported.
Yesterday
ISM Services industry index fell to 57.3 from 59.7
Fed Minutes indicate the FED is continuing down the path Japan took to perpetual socialist style perpetual economic depression.
MBA Mortgage Index 04/01 fell again -2.0% after falling -7.5% last month as housing is in a full double downturn.
Crude Inventories 04/02 rose 1.952M after rising last month in spite of the highest April gasoline prices in the history of America. The last time that happened the economy was in a state of free-fall by the end of the year.
This week
Apr 07 08:30 Initial Claims
Apr 07 08:30 Continuing Claims
Apr 07 15:00 Consumer Credit
Apr 08 10:00 Wholesale
Market Outlook April 7, 2011
The world markets are now holding their breath waiting to see if the markets plunge as the Obama socialists follow the Japanese socialist plan which is government spending into a PIIGS type oblivion while Germany and Britain are belt tightening their governments and raising interest rates so that money has some value. If the Republicans back down on their miniscule government cut the world thinks it is doomed to perpetual socialist self indulgent stupidity like we see in the Greek union riots.
The stock market is continuing to test its head and shoulders now. The markets all appear to be topping out. To us it looks like the 47dma is no longer a support level but instead has become the resistance level for a topping trend (head and shoulders) line.
S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=
We think the next stock market support level will be down at Nov 4, 2010 levels.
We need to warn you now to liquidate gold and silver when it has run up, not after it drops quickly back to about $400 and $8 respectively.
The success of President Ronald Reagan was due to his selection of intelligent advisors not socialists and gold fell rapidly from $800/oz to $200/ox and stayed very low for almost 20 years. Silver fell back then to $3/oz. President Reagan was a supply-side advocate and ended the artificial shortages that president Jimmy caused in everything from toilet paper, gasoline, silver, and gold.
World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. That means more than half of the stock market rise from the 2009 lows is unsupportable and could evaporate. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Asia seems to be waiting to see if the market breaks up or breaks down at this resistance point.
Asian markets were flat last night. China up 0.1%, Hong Kong down -0.1%, India down –0.1%, and Japan up 0.1%.
European markets are flat this morning in a range of about -0.2% to 0.2% half way through their day.
US pre-market futures are flat at about -0.1 % at 7:00 AM EST.
Wednesday, April 6, 2011
Bernacke/Obama want America to walk into the Japanese low interest trap of perpetual recession.
Bernacke/Obama want America to walk into the Japanese low interest trap of perpetual recession.
It starts by spending the nation’s way into debt until as in Japan the debt exceeds the national income and it is impossible to pay down without national pain.
That spending spree is only possible by keeping the interest rate close to zero as they do in Japan where the people’s savings are taken by their government and the people get paid next to nothing in interest.
Eventually the debt is so large the government is trapped and has to avoid higher interest rates because it cannot afford that annual cost of the interest.
This makes an extremely unstable situation and if the Japanese were to stop saving and buy assets instead, the interest rate would soar and the value of the yen would plummet.
Obama socialists must be ejected along with the other socialists before the socialists give us perpetual economic recession as the communist Eastern Block had before they went bankrupt. The Japanese socialists have have had a recession for 30 years now.
The Treasury Department predicts the U.S. will hit its $14.294 trillion debt limit no later than May 16. Government could already begin to shut down this weekend.
If Japan’s interest rate rises just 0.2% on their national debt then 70% of their national income would go just to paying the interest on their national debt.
A shortage of parts from disaster-ridden Japan is very likely to force Toyota to shut down its North American factories and impact roughly 25,000 workers. It’s not clear how long Toyota will be forced to close its facilities.
Warren Buffet is depicted was having become irrational and mentally unstable on GE/MSNBC/Pravda.
Portuguese bonds fell and the cost of insuring the nation’s debt rose to a record and the Euro weakened after Moody’s Investors Service said a bailout is inevitable. The interest Portugal pays on 10-year bonds climbed to 8.76%. Moody’s cut its rating on Portugal’s debt for the second time in three weeks, saying another downgrade may follow and the winner of elections in June will probably tap Europe’s bailout fund with “urgency.” The downgrade “is further evidence of the sovereign decay in the area. The European Central Bank will probably raise interest rates this week to contain inflation.
US Auto & Lt Truck Salesfor March are a week overdue as rumors of a slowdown loom due to Japanese parts shortages. Obama does not want to release the disappointing numbers.
A US government shutdown is looming.
Oil just hit a 30-Month High.
World Markets:
Ireland's ratings were lowered again.
China's stock market prices are in a triangle formation and will breakout probably within a week. At this point we believe the breakout will be down because most of the world is tightening belts now and letting interest rats rise to slow demand for debt. Higher rates will put extreme pressure on countries like the "PIIGS", Portugal, Ireland, Iceland, Greece, and Spain that have done little to balance their budgets. Spain will be the next to fall and socialist unions may riot. The contagion is spreading in the EU. Japan is now a walking debt ridden economic zombie because they took the communist position that everyone should be given a job for life. Unfortunately that leads to nuclear reactors and aircraft problems that kill people because there is no incentive to do a good job when the job is guaranteed.
US Market Highlights
Latest reports
IS Manufacturing Index Mar dropped to 61.2.from 61.4
Construction Spending Feb fell -1.4% or -2.5% depending on whether last -0.7% or the manipulated -1.8% is correct. When the numbers look bad and they take spending numbers they receive and move them backward that is corruption because in another week they will have to adjust the present numbers as well. Either always compare final numbers a week later or compare them at the end of the month. They do but not and could have a 5-wk interval last month and a 3 or 4 week interval this month.
Auto and truck sales still not being reported.
Yesterday
ISM Services industry index fell to 57.3 from 59.7
Fed Minutes indicate the FED is continuing down the path Japan took to perpetual communist style economic depression.
MBA Mortgage Index 04/01 fell again -2.0% after falling -7.5% last month as housing is in a full double downturn.
Crude Inventories 04/02 rose 1.952M after rising last month in spite of the highest April gasoline prices in the history of America. The last time that happened the economy was in a state of free-fall by the end of the year.
This week
Apr 07 08:30 Initial Claims
Apr 07 08:30 Continuing Claims
Apr 07 15:00 Consumer Credit
Apr 08 10:00 Wholesale
Market Outlook April 6, 2011
The stock market is continuing to test its head and shoulders now. From a charting standpoint, some look at the "Very Strong to Very Weak Ratio"" to see if the stock leaders are indeed leading and trending higher. The historical median is 1.36 on a market rally, and it goes above 10 in strong rallies. But it is about 1.06 now.
The markets all appear to be topping out. To us it looks like the 47dma is no longer a support level but instead has become the resistance level for a topping trend (head and shoulders) line.
S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=
We think the next stock market support level will be down at Nov 4, 2010 levels.
We need to warn you now to liquidate gold and silver when it has run up, not after it drops quickly back to about $400 and $8 respectively.
The success of President Ronald Reagan was due to his selection of intelligent advisors not socialists and gold fell rapidly from $800/oz to $200/ox and stayed very low for almost 20 years. Silver fell back then to $3/oz. President Reagan was a supply-side advocate and ended the artificial shortages that president Jimmy caused in everything from toilet paper, gasoline, silver, and gold.
World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. That means more than half of the stock market rise from the 2009 lows is unsupportable and could evaporate. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Asian markets were mixed last night. China up 1.1%, Hong Kong up 0.6%, India down –0.4%, and Japan down –0.3%.
European markets are up this morning in a range of about 0.2% to 0.8% half way through their day.
US pre-market futures are up at about 0.7 % at 7:30 AM EST.
It starts by spending the nation’s way into debt until as in Japan the debt exceeds the national income and it is impossible to pay down without national pain.
That spending spree is only possible by keeping the interest rate close to zero as they do in Japan where the people’s savings are taken by their government and the people get paid next to nothing in interest.
Eventually the debt is so large the government is trapped and has to avoid higher interest rates because it cannot afford that annual cost of the interest.
This makes an extremely unstable situation and if the Japanese were to stop saving and buy assets instead, the interest rate would soar and the value of the yen would plummet.
Obama socialists must be ejected along with the other socialists before the socialists give us perpetual economic recession as the communist Eastern Block had before they went bankrupt. The Japanese socialists have have had a recession for 30 years now.
The Treasury Department predicts the U.S. will hit its $14.294 trillion debt limit no later than May 16. Government could already begin to shut down this weekend.
If Japan’s interest rate rises just 0.2% on their national debt then 70% of their national income would go just to paying the interest on their national debt.
A shortage of parts from disaster-ridden Japan is very likely to force Toyota to shut down its North American factories and impact roughly 25,000 workers. It’s not clear how long Toyota will be forced to close its facilities.
Warren Buffet is depicted was having become irrational and mentally unstable on GE/MSNBC/Pravda.
Portuguese bonds fell and the cost of insuring the nation’s debt rose to a record and the Euro weakened after Moody’s Investors Service said a bailout is inevitable. The interest Portugal pays on 10-year bonds climbed to 8.76%. Moody’s cut its rating on Portugal’s debt for the second time in three weeks, saying another downgrade may follow and the winner of elections in June will probably tap Europe’s bailout fund with “urgency.” The downgrade “is further evidence of the sovereign decay in the area. The European Central Bank will probably raise interest rates this week to contain inflation.
US Auto & Lt Truck Salesfor March are a week overdue as rumors of a slowdown loom due to Japanese parts shortages. Obama does not want to release the disappointing numbers.
A US government shutdown is looming.
Oil just hit a 30-Month High.
World Markets:
Ireland's ratings were lowered again.
China's stock market prices are in a triangle formation and will breakout probably within a week. At this point we believe the breakout will be down because most of the world is tightening belts now and letting interest rats rise to slow demand for debt. Higher rates will put extreme pressure on countries like the "PIIGS", Portugal, Ireland, Iceland, Greece, and Spain that have done little to balance their budgets. Spain will be the next to fall and socialist unions may riot. The contagion is spreading in the EU. Japan is now a walking debt ridden economic zombie because they took the communist position that everyone should be given a job for life. Unfortunately that leads to nuclear reactors and aircraft problems that kill people because there is no incentive to do a good job when the job is guaranteed.
US Market Highlights
Latest reports
IS Manufacturing Index Mar dropped to 61.2.from 61.4
Construction Spending Feb fell -1.4% or -2.5% depending on whether last -0.7% or the manipulated -1.8% is correct. When the numbers look bad and they take spending numbers they receive and move them backward that is corruption because in another week they will have to adjust the present numbers as well. Either always compare final numbers a week later or compare them at the end of the month. They do but not and could have a 5-wk interval last month and a 3 or 4 week interval this month.
Auto and truck sales still not being reported.
Yesterday
ISM Services industry index fell to 57.3 from 59.7
Fed Minutes indicate the FED is continuing down the path Japan took to perpetual communist style economic depression.
MBA Mortgage Index 04/01 fell again -2.0% after falling -7.5% last month as housing is in a full double downturn.
Crude Inventories 04/02 rose 1.952M after rising last month in spite of the highest April gasoline prices in the history of America. The last time that happened the economy was in a state of free-fall by the end of the year.
This week
Apr 07 08:30 Initial Claims
Apr 07 08:30 Continuing Claims
Apr 07 15:00 Consumer Credit
Apr 08 10:00 Wholesale
Market Outlook April 6, 2011
The stock market is continuing to test its head and shoulders now. From a charting standpoint, some look at the "Very Strong to Very Weak Ratio"" to see if the stock leaders are indeed leading and trending higher. The historical median is 1.36 on a market rally, and it goes above 10 in strong rallies. But it is about 1.06 now.
The markets all appear to be topping out. To us it looks like the 47dma is no longer a support level but instead has become the resistance level for a topping trend (head and shoulders) line.
S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=
We think the next stock market support level will be down at Nov 4, 2010 levels.
We need to warn you now to liquidate gold and silver when it has run up, not after it drops quickly back to about $400 and $8 respectively.
The success of President Ronald Reagan was due to his selection of intelligent advisors not socialists and gold fell rapidly from $800/oz to $200/ox and stayed very low for almost 20 years. Silver fell back then to $3/oz. President Reagan was a supply-side advocate and ended the artificial shortages that president Jimmy caused in everything from toilet paper, gasoline, silver, and gold.
World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. That means more than half of the stock market rise from the 2009 lows is unsupportable and could evaporate. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Asian markets were mixed last night. China up 1.1%, Hong Kong up 0.6%, India down –0.4%, and Japan down –0.3%.
European markets are up this morning in a range of about 0.2% to 0.8% half way through their day.
US pre-market futures are up at about 0.7 % at 7:30 AM EST.
Tuesday, April 5, 2011
Japan has joined the PIIGS and is on the edge of financial collapse.
Japan has joined the PIIGS and is on the edge of financial collapse.
n
If Japan’s interest rate rises just 0.2% on their national debt then 70% of their national income would go just to paying the interest on their national debt.
A shortage of parts from disaster-ridden Japan is very likely to force Toyota to shut down its North American factories and impact roughly 25,000 workers. It’s not clear how long Toyota will be forced to close its facilities.
Warren Buffet is depicted as having become irrational and mentally unstable on GE/MSNBC/Pravda this morning.
Portuguese bonds fell and the cost of insuring the nation’s debt rose to a record and the Euro weakened after Moody’s Investors Service said a bailout is inevitable. The interest Portugal pays on 10-year bonds climbed to 8.76%. Moody’s cut its rating on Portugal’s debt for the second time in three weeks, saying another downgrade may follow and the winner of elections in June will probably tap Europe’s bailout fund with “urgency.” The downgrade “is further evidence of the sovereign decay in the area. The European Central Bank will probably raise interest rates this week to contain inflation.
The Treasury Department predicts the U.S. will hit its $14.294 trillion debt limit no later than May 16.
The Federal Reserve needs to monitor inflation “extremely closely,” Chairman Ben S. Bernanke said yesterday, a day before minutes of the latest policy meeting are released. QE@ will end and interest rates could creep up.
The stock market is testing the head and shoulders now. From a charting standpoint, some look at the "Very Strong to Very Weak Ratio" to see if the stock leaders are indeed leading. and trending higher. What is important is the "fractional ratio between the two which can be calculated by dividing the leaders by the weak. The differential is 1.06 which is a positive because and means that the Very Strong to Very Weak Stocks are "pulling the rest of the market up. That is not too good at all because the historical median is 1.36 on a market rally, and it goes above 10 in strong rallies. But this could be partially due to QE2 that stimulates acquisitions which usually boost the weak takeover candidates. QE2 stimulates debt creation that is the problem that started the recession so we are gaining today at the price of selling our future. That is called socialism and it only lasts until the socialists expropriate all individual wealth
US Auto & Lt Truck Salesfor March are a week overdue as rumors of a slowdown loom due to Japanese parts shortages.
US government shutdown is looming.
Oil just hit a 30-Month High.
World Markets:
Ireland's ratings were lowered to 'BBB+/A-2 but may now be stable.
China's stock market prices are in a triangle formation and will breakout probably within a week or two. At this point we believe the breakout will be down because most of the world is tightening belts now and letting interest rats rise to slow demand for debt. Higher rates will put extreme pressure on countries like the "PIIGS", Portugal, Ireland, Iceland, Greece, and Spain that have done little to balance their budgets. Spain will be the next to fall and socialist unions may riot. The contagion is spreading in the EU.
US Market Highlights
Latest reports
IS Manufacturing Index Mar dropped to 61.2.from 61.4
Construction Spending Feb fell -1.4% or -2.5% depending on whether last -0.7% or the manipulated -1.8% is correct. When the numbers look bad and they take spending numbers they receive and move them backward that is corruption because in another week they will have to adjust the present numbers as well. Either always compare final numbers a week later or compare them at the end of the month. They do but not and could have a 5-wk interval last month and a 3 or 4 week interval this month.
Auto and truck sales still not being reported.
This week
Apr 05 10:00 ISM Services
Apr 05 14:00 Fed Minutes
Apr 06 07:00 MBA Mortgage Index
Apr 06 10:30 Crude Inventories
Apr 07 08:30 Initial Claims
Apr 07 08:30 Continuing Claims
Apr 07 15:00 Consumer Credit
Apr 08 10:00 Wholesale
Market Outlook April 5, 2011
The high prices we are seeing are due to QE2 (easy credit) which is about to end and the artificial interruption of energy supplies by the socialists in the oval office that is likely to continue. He FED is now poised to raise interest rates to be able to attract cash to fund the Obama national spending spree.
Treasury two- and five-year notes extended their loss and Germany begins to lose as well on bets the world’s biggest economies continue to run up deficits. The dollar and the cost of debt will cause Americans to suffer as long as Obama spends OPM to keep his ACORN welfare state aspirations alive.
The markets all appear to be topping out. To us it looks like the 47dma is no longer a support level but instead has become the resistance level for a topping trend (head and shoulders) line.
S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=
We think the next stock market support level will be down at Nov 4, 2010 levels.
We need to warn you now to liquidate gold and silver as this could be like the market in 1973 or 1978 when the markets rose and then fell and hit old bottoms. Under Jimmy Carter's malaise he cut energy supplies just as Obama is doing. The current move is in anticipation of a repeat of 1981. That was a one-time occurrence because the USA went off the gold standard in 1970 under President Nixon.
The success of President Ronald Reagan was due to his selection of intelligent advisors not socialists and gold fell rapidly from $800/oz to $200/ox and stayed very low for almost 20 years. President Reagan was a supply-side advocate and ended the artificial shortages that president Jimmy caused in everything from toilet paper to gold.
World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. That means 60% of the stock market rise from the 2009 lows could evaporate as the initial rise evaporated under Jimmy Carter. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Asian markets were down last night. China closed, Hong Kong closed, India down –0.1%, and Japan down –1.1%.
European markets are down this morning in a range of about -0.2% to -0.8% half way through their day.
US pre-market futures are down at about -0.51 % at 6:30 AM EST.
n
If Japan’s interest rate rises just 0.2% on their national debt then 70% of their national income would go just to paying the interest on their national debt.
A shortage of parts from disaster-ridden Japan is very likely to force Toyota to shut down its North American factories and impact roughly 25,000 workers. It’s not clear how long Toyota will be forced to close its facilities.
Warren Buffet is depicted as having become irrational and mentally unstable on GE/MSNBC/Pravda this morning.
Portuguese bonds fell and the cost of insuring the nation’s debt rose to a record and the Euro weakened after Moody’s Investors Service said a bailout is inevitable. The interest Portugal pays on 10-year bonds climbed to 8.76%. Moody’s cut its rating on Portugal’s debt for the second time in three weeks, saying another downgrade may follow and the winner of elections in June will probably tap Europe’s bailout fund with “urgency.” The downgrade “is further evidence of the sovereign decay in the area. The European Central Bank will probably raise interest rates this week to contain inflation.
The Treasury Department predicts the U.S. will hit its $14.294 trillion debt limit no later than May 16.
The Federal Reserve needs to monitor inflation “extremely closely,” Chairman Ben S. Bernanke said yesterday, a day before minutes of the latest policy meeting are released. QE@ will end and interest rates could creep up.
The stock market is testing the head and shoulders now. From a charting standpoint, some look at the "Very Strong to Very Weak Ratio" to see if the stock leaders are indeed leading. and trending higher. What is important is the "fractional ratio between the two which can be calculated by dividing the leaders by the weak. The differential is 1.06 which is a positive because and means that the Very Strong to Very Weak Stocks are "pulling the rest of the market up. That is not too good at all because the historical median is 1.36 on a market rally, and it goes above 10 in strong rallies. But this could be partially due to QE2 that stimulates acquisitions which usually boost the weak takeover candidates. QE2 stimulates debt creation that is the problem that started the recession so we are gaining today at the price of selling our future. That is called socialism and it only lasts until the socialists expropriate all individual wealth
US Auto & Lt Truck Salesfor March are a week overdue as rumors of a slowdown loom due to Japanese parts shortages.
US government shutdown is looming.
Oil just hit a 30-Month High.
World Markets:
Ireland's ratings were lowered to 'BBB+/A-2 but may now be stable.
China's stock market prices are in a triangle formation and will breakout probably within a week or two. At this point we believe the breakout will be down because most of the world is tightening belts now and letting interest rats rise to slow demand for debt. Higher rates will put extreme pressure on countries like the "PIIGS", Portugal, Ireland, Iceland, Greece, and Spain that have done little to balance their budgets. Spain will be the next to fall and socialist unions may riot. The contagion is spreading in the EU.
US Market Highlights
Latest reports
IS Manufacturing Index Mar dropped to 61.2.from 61.4
Construction Spending Feb fell -1.4% or -2.5% depending on whether last -0.7% or the manipulated -1.8% is correct. When the numbers look bad and they take spending numbers they receive and move them backward that is corruption because in another week they will have to adjust the present numbers as well. Either always compare final numbers a week later or compare them at the end of the month. They do but not and could have a 5-wk interval last month and a 3 or 4 week interval this month.
Auto and truck sales still not being reported.
This week
Apr 05 10:00 ISM Services
Apr 05 14:00 Fed Minutes
Apr 06 07:00 MBA Mortgage Index
Apr 06 10:30 Crude Inventories
Apr 07 08:30 Initial Claims
Apr 07 08:30 Continuing Claims
Apr 07 15:00 Consumer Credit
Apr 08 10:00 Wholesale
Market Outlook April 5, 2011
The high prices we are seeing are due to QE2 (easy credit) which is about to end and the artificial interruption of energy supplies by the socialists in the oval office that is likely to continue. He FED is now poised to raise interest rates to be able to attract cash to fund the Obama national spending spree.
Treasury two- and five-year notes extended their loss and Germany begins to lose as well on bets the world’s biggest economies continue to run up deficits. The dollar and the cost of debt will cause Americans to suffer as long as Obama spends OPM to keep his ACORN welfare state aspirations alive.
The markets all appear to be topping out. To us it looks like the 47dma is no longer a support level but instead has become the resistance level for a topping trend (head and shoulders) line.
S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=
We think the next stock market support level will be down at Nov 4, 2010 levels.
We need to warn you now to liquidate gold and silver as this could be like the market in 1973 or 1978 when the markets rose and then fell and hit old bottoms. Under Jimmy Carter's malaise he cut energy supplies just as Obama is doing. The current move is in anticipation of a repeat of 1981. That was a one-time occurrence because the USA went off the gold standard in 1970 under President Nixon.
The success of President Ronald Reagan was due to his selection of intelligent advisors not socialists and gold fell rapidly from $800/oz to $200/ox and stayed very low for almost 20 years. President Reagan was a supply-side advocate and ended the artificial shortages that president Jimmy caused in everything from toilet paper to gold.
World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. That means 60% of the stock market rise from the 2009 lows could evaporate as the initial rise evaporated under Jimmy Carter. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Asian markets were down last night. China closed, Hong Kong closed, India down –0.1%, and Japan down –1.1%.
European markets are down this morning in a range of about -0.2% to -0.8% half way through their day.
US pre-market futures are down at about -0.51 % at 6:30 AM EST.
Monday, April 4, 2011
The stock market is testing the head and shoulders now.
The stock market is testing the head and shoulders now. From a charting standpoint, some look at the "Very Strong to Very Weak Ratio" to see if the stock leaders are indeed leading. and trending higher. What is important is the "fractional ratio between the two which can be calculated by dividing the leaders by the weak. When we do that, the differential is 1.06 which is a positive because and means that the Very Strong to Very Weak Stocks are "pulling the rest of the market up. That is not too good at all because the historical median is 1.36 on a market rally, and it goes above 10 in strong rallies. But this could be partially due to QE2 that stimulates acquisitions which usually boost the weak takeover candidates. QE2 stimulates debt creation that is the problem that started the recession so we are gaining today at the price of selling our future. That is called socialism and it only lasts until the socialists expropriate all individual wealth
US government shutdown is looming.
Oil just hit a 30-Month High.
World Markets:
Ireland's ratings were lowered to 'BBB+/A-2 but may now be stable.
China's stock market prices are in a triangle formation and will breakout probably within a week or two. At this point we believe the breakout will be down because most of the world is tightening belts now and letting interest rats rise to slow demand for debt. Higher rates will put extreme pressure on countries like the "PIIGS", Portugal, Ireland, Iceland, Greece, and Spain that have done little to balance their budgets. Spain will be the next to fall and socialist unions may riot. The contagion is spreading in the EU.
US Market Highlights
Latest reports
IS Manufacturing Index Mar dropped to 61.2.from 61.4
Construction Spending Feb fell -1.4% or -2.5% depending on whether last -0.7% or the manipulated -1.8% is correct. When the numbers look bad and they take spending numbers they receive and move them backward that is corruption because in another week they will have to adjust the present numbers as well. Either always compare final numbers a week later or compare them at the end of the month. They do but not and could have a 5-wk interval last month and a 3 or 4 week interval this month.
This week
Apr 05 10:00 ISM Services
Apr 05 14:00 Fed Minutes
Apr 06 07:00 MBA Mortgage Index
Apr 06 10:30 Crude Inventories
Apr 07 08:30 Initial Claims
Apr 07 08:30 Continuing Claims
Apr 07 15:00 Consumer Credit
Apr 08 10:00 Wholesale
Market Outlook April 4, 2011
Treasury two- and five-year notes extended their weekly loss and Germany begins to lose as well on bets the world’s biggest economies continue to run up deficits. The dollar and the cost of debt will cause Americans to suffer as long as Obama spends OPM to keep his ACORN welfare state aspirations alive.
The markets all appear to be topping out. To us it looks like the 47dma is no longer a support level but instead has become the resistance level for a topping trend (head and shoulders) line.
S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=
We think the next stock market support level will be down at Nov 4, 2010 levels.
The high prices we are seeing are due to QE2 (easy credit) which is about to end and the artificial interruption of energy supplies by the socialists in the oval office that is likely to continue. We need to warn you now to liquidate gold and silver as this could be like the market in 1973 or 1978 when the markets rose and then fell and hit old bottoms. Under Jimmy Carter's malaise he cut energy supplies just as Obama is doing. The current move is in anticipation of a repeat of 1981. That was a one-time occurrence because the USA went off the gold standard in 1970 under President Nixon.
World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. That means 60% of the stock market rise from the 2009 lows could evaporate as the initial rise evaporated under Jimmy Carter. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Asian markets were up last night. China closed, Hong Kong up 1.5%, India up 1.5%, and Japan up -0.5%.
European markets are flat this morning in a range of about -0.4% to 0.5% half way through their day.
US pre-market futures are flat at about 0.1 % at 6:30 AM EST.
US government shutdown is looming.
Oil just hit a 30-Month High.
World Markets:
Ireland's ratings were lowered to 'BBB+/A-2 but may now be stable.
China's stock market prices are in a triangle formation and will breakout probably within a week or two. At this point we believe the breakout will be down because most of the world is tightening belts now and letting interest rats rise to slow demand for debt. Higher rates will put extreme pressure on countries like the "PIIGS", Portugal, Ireland, Iceland, Greece, and Spain that have done little to balance their budgets. Spain will be the next to fall and socialist unions may riot. The contagion is spreading in the EU.
US Market Highlights
Latest reports
IS Manufacturing Index Mar dropped to 61.2.from 61.4
Construction Spending Feb fell -1.4% or -2.5% depending on whether last -0.7% or the manipulated -1.8% is correct. When the numbers look bad and they take spending numbers they receive and move them backward that is corruption because in another week they will have to adjust the present numbers as well. Either always compare final numbers a week later or compare them at the end of the month. They do but not and could have a 5-wk interval last month and a 3 or 4 week interval this month.
This week
Apr 05 10:00 ISM Services
Apr 05 14:00 Fed Minutes
Apr 06 07:00 MBA Mortgage Index
Apr 06 10:30 Crude Inventories
Apr 07 08:30 Initial Claims
Apr 07 08:30 Continuing Claims
Apr 07 15:00 Consumer Credit
Apr 08 10:00 Wholesale
Market Outlook April 4, 2011
Treasury two- and five-year notes extended their weekly loss and Germany begins to lose as well on bets the world’s biggest economies continue to run up deficits. The dollar and the cost of debt will cause Americans to suffer as long as Obama spends OPM to keep his ACORN welfare state aspirations alive.
The markets all appear to be topping out. To us it looks like the 47dma is no longer a support level but instead has become the resistance level for a topping trend (head and shoulders) line.
S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=
We think the next stock market support level will be down at Nov 4, 2010 levels.
The high prices we are seeing are due to QE2 (easy credit) which is about to end and the artificial interruption of energy supplies by the socialists in the oval office that is likely to continue. We need to warn you now to liquidate gold and silver as this could be like the market in 1973 or 1978 when the markets rose and then fell and hit old bottoms. Under Jimmy Carter's malaise he cut energy supplies just as Obama is doing. The current move is in anticipation of a repeat of 1981. That was a one-time occurrence because the USA went off the gold standard in 1970 under President Nixon.
World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. That means 60% of the stock market rise from the 2009 lows could evaporate as the initial rise evaporated under Jimmy Carter. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Asian markets were up last night. China closed, Hong Kong up 1.5%, India up 1.5%, and Japan up -0.5%.
European markets are flat this morning in a range of about -0.4% to 0.5% half way through their day.
US pre-market futures are flat at about 0.1 % at 6:30 AM EST.
Friday, April 1, 2011
“GE/MSNBC/Pravda’s socialist CEO Immelt must go for tax cheating” say the leftists.
“GE/MSNBC/Pravda’s socialist CEO Immelt must go for tax cheating” say the leftists.
Every leftist economic appointee of the Obama administration has been a tax cheater. GE paid only 3% taxes in recent years. An American worker pays about 10% but GE being a socialist company thinks 3% is too much. Socialists only like to spend OPM. (Other people’s money).
.
Obama to Focus on Clean Energy, Daring Republicans to Call It 'Froufrou'. 'Froufrou' ? 'Froufrou'? Obama is such a leftist snob. 'Froufrou' ? 'Froufrou'? Give America a break Obama. They don’t even speak like that in Obama's homeland.
Qaddafi may seek exile in Venezuela.
World Markets:
Poland’s public debt rose to 53 percent of economic output last year yet still did not trigger any austerity measures, according to the Deputy Finance Minister. After all Japan has been over 100% for a decade.
European confidence in the economic outlook worsened in March but not nearly as much as reported in America on Tuesday. Surging energy costs, nuclear radiation, and Japan’s earthquake threatens global growth. The index of executive and consumer sentiment in the 17- nation euro region slipped to 107.3 from a revised 107.9 in February.
China's stock market prices are in a triangle formation going nowhere and will breakout probably within a month. At this point we believe the breakout will be down because most of the world is tightening belts now and letting interest rats rise to slow demand for debt. Higher rates will put extreme pressure on countries like the "PIIGS", Portugal, Ireland, Iceland, Greece, and Spain. Spain will be the next to fall and beg for a bailout because socialist unions will riot if they don't. The contagion is spreading in the EU.
US Market Highlights
Latest reports out
Personal Income rate for Feb dropped to 0.3% from 1.2% last month.
Personal Spending increased in Feb by 0.7from 0.3% last month.
PCE Prices - Core inflation in Feb was 0.2%/mo (2.4%/yr) up from 0.1%/mo or 1.2% last month.
Pending Home Sales Feb rose 2.1% offsetting most of the decline of -2.8% last month
Mar 29 Case-Shiller 20-city Index Jan fell 3.1%. US single family home prices fell for the seventh straight month bringing prices down to the April 2009 lows.
Consumer Confidence Mar plummeted steeply to 63.4 from 70.4 last month, a new three-month low.
MBA Mortgage Index 03/25 fell -7.5% after being up +2.7% last week
Challenger Job Cuts Mar down -38.6% canceling more than the 20% increase last month.
ADP Employment Change Mar 201K dropped 7K to 16K from last month which mover 9K forward by revising last month down to 208K from the original 217K Quote. Either way the new job creation shrunk at least 7K to 16K depending on how fraudulent the Obama team chose to be.
Crude Inventories 03/26 up slightly to 2.945M from 2.131M
Mar 31
Initial Claims 03/26 rose to either 388K or 400K depending on the degree of Obama manipulation from the 382K reported last week. This is more evidence of a double dip beginning in spite of lavish spending of America’s wealth.
Continuing Claims 03/19 is 3714K to 3755K because Obama moved 41K back so that last week’s report was raised to 3765K from its original reported 3721K which looked pretty good. Notice Obama always likes the current report to look better than the last and this time it took a transfer of 41K or an error of 1.5%.
Chicago PMI Mar showed that manufacturing got worse and stands at 70.6 down from 71.2 last month.
Factory Orders in Feb fell -0.1% after increasing 3.3% last month another sign of a slowdown.
Apr 1
Nonfarm Payrolls Mar rose to 216K from 192K
http://www.briefing.com/Investor/Public/Calendars/Econon micReleases/employ.htm
Nonfarm Private Payrolls rate Mar dropped to 230K from 240K
Unemployment Rate Mar dropped to 8.8% from 8.9%
Hourly Earnings Mar did not change for two months
Average Workweek Mar 34.3 did not change for two months
IS Manufacturing Index Mar dropped to 61.2 59.from 61.4
Construction Spending Feb fell -1.4% or 2.5% depending on whether last -0.7% or the manipulated -1.8% is correct. When the numbers look bad and they take spending numbers they receive and move them backward that is corruption because in another week they will have to adjust the present numbers as well. Either always compare final numbers a week later or compare them at the end of the month. They do but not and could have a 5-wk interval last month and a 3 or 4 week interval this month.
Read more: http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm#ixzz1IHxoqzti
Auto Sales Apr
PM Truck Sales Apr
Market Outlook April 1, 2011
Treasury two- and five-year notes extended their second consecutive weekly loss on bets the world’s biggest economy withstands Tea Party efforts to reduce the deficit. The dollar and the cost of debt will cause Americans to suffer as long as Obama spends OPM to keep his ACORN welfare state alive.
The markets all previously broke below their 50 point moving averages and now appear to be topping out at that level last week. MSNBC lies and says the market did not break through the 50dma. You be the judge. To us it looks like the 47dma is no longer a support level but instead has become the resistance level or a topping trend (head and shoulders) line.
S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=
We think the next stock market support level will be down at Nov 4, 2010 levels about another 7% lower. But actually the main support starts about 17% lower than yesterday's close.
The high prices we are seeing are not due to high prosperity causing demand. The high prices are due to QE2 (easy credit) which is about to end and the artificial interruption of energy supplies by the socialists in the oval office. We need to warn you now to liquidate gold and silver as this could be like the market in 73 or 78 when the markets rose and then hit old bottoms. Under Jimmy Carter's malaise he cut energy supplies just as Obama is doing. The current move is in anticipation of a repeat of 1981. That was a one-time occurrence because the USA went off the gold standard in 1970 under President Nixon. The success or President Ronald Reagan was due to his selection of intelligent advisors not socialists and gold fell rapidly from $800/oz to $200/ox and stayed very low for almost 20 years. President Reagan was a supply-side advocate and ended the artificial shortages that president Jimmy caused in everything from toilet paper to gold.
World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. That means 60% of the stock market rise from the 2009 lows could evaporate as the initial rise evaporated under Jimmy Carter. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Asian markets were mixed last night. China up 1.3%, Hong Kong up 1.2%, India down -0.2%, and Japan down -0.5%.
European markets are up this morning in a range of about 0.1% to 1.1% half way through their day.
US pre-market futures are up slightly at about 0.3 % at 7:30 AM EST.
Every leftist economic appointee of the Obama administration has been a tax cheater. GE paid only 3% taxes in recent years. An American worker pays about 10% but GE being a socialist company thinks 3% is too much. Socialists only like to spend OPM. (Other people’s money).
.
Obama to Focus on Clean Energy, Daring Republicans to Call It 'Froufrou'. 'Froufrou' ? 'Froufrou'? Obama is such a leftist snob. 'Froufrou' ? 'Froufrou'? Give America a break Obama. They don’t even speak like that in Obama's homeland.
Qaddafi may seek exile in Venezuela.
World Markets:
Poland’s public debt rose to 53 percent of economic output last year yet still did not trigger any austerity measures, according to the Deputy Finance Minister. After all Japan has been over 100% for a decade.
European confidence in the economic outlook worsened in March but not nearly as much as reported in America on Tuesday. Surging energy costs, nuclear radiation, and Japan’s earthquake threatens global growth. The index of executive and consumer sentiment in the 17- nation euro region slipped to 107.3 from a revised 107.9 in February.
China's stock market prices are in a triangle formation going nowhere and will breakout probably within a month. At this point we believe the breakout will be down because most of the world is tightening belts now and letting interest rats rise to slow demand for debt. Higher rates will put extreme pressure on countries like the "PIIGS", Portugal, Ireland, Iceland, Greece, and Spain. Spain will be the next to fall and beg for a bailout because socialist unions will riot if they don't. The contagion is spreading in the EU.
US Market Highlights
Latest reports out
Personal Income rate for Feb dropped to 0.3% from 1.2% last month.
Personal Spending increased in Feb by 0.7from 0.3% last month.
PCE Prices - Core inflation in Feb was 0.2%/mo (2.4%/yr) up from 0.1%/mo or 1.2% last month.
Pending Home Sales Feb rose 2.1% offsetting most of the decline of -2.8% last month
Mar 29 Case-Shiller 20-city Index Jan fell 3.1%. US single family home prices fell for the seventh straight month bringing prices down to the April 2009 lows.
Consumer Confidence Mar plummeted steeply to 63.4 from 70.4 last month, a new three-month low.
MBA Mortgage Index 03/25 fell -7.5% after being up +2.7% last week
Challenger Job Cuts Mar down -38.6% canceling more than the 20% increase last month.
ADP Employment Change Mar 201K dropped 7K to 16K from last month which mover 9K forward by revising last month down to 208K from the original 217K Quote. Either way the new job creation shrunk at least 7K to 16K depending on how fraudulent the Obama team chose to be.
Crude Inventories 03/26 up slightly to 2.945M from 2.131M
Mar 31
Initial Claims 03/26 rose to either 388K or 400K depending on the degree of Obama manipulation from the 382K reported last week. This is more evidence of a double dip beginning in spite of lavish spending of America’s wealth.
Continuing Claims 03/19 is 3714K to 3755K because Obama moved 41K back so that last week’s report was raised to 3765K from its original reported 3721K which looked pretty good. Notice Obama always likes the current report to look better than the last and this time it took a transfer of 41K or an error of 1.5%.
Chicago PMI Mar showed that manufacturing got worse and stands at 70.6 down from 71.2 last month.
Factory Orders in Feb fell -0.1% after increasing 3.3% last month another sign of a slowdown.
Apr 1
Nonfarm Payrolls Mar rose to 216K from 192K
http://www.briefing.com/Investor/Public/Calendars/Econon micReleases/employ.htm
Nonfarm Private Payrolls rate Mar dropped to 230K from 240K
Unemployment Rate Mar dropped to 8.8% from 8.9%
Hourly Earnings Mar did not change for two months
Average Workweek Mar 34.3 did not change for two months
IS Manufacturing Index Mar dropped to 61.2 59.from 61.4
Construction Spending Feb fell -1.4% or 2.5% depending on whether last -0.7% or the manipulated -1.8% is correct. When the numbers look bad and they take spending numbers they receive and move them backward that is corruption because in another week they will have to adjust the present numbers as well. Either always compare final numbers a week later or compare them at the end of the month. They do but not and could have a 5-wk interval last month and a 3 or 4 week interval this month.
Read more: http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm#ixzz1IHxoqzti
Auto Sales Apr
PM Truck Sales Apr
Market Outlook April 1, 2011
Treasury two- and five-year notes extended their second consecutive weekly loss on bets the world’s biggest economy withstands Tea Party efforts to reduce the deficit. The dollar and the cost of debt will cause Americans to suffer as long as Obama spends OPM to keep his ACORN welfare state alive.
The markets all previously broke below their 50 point moving averages and now appear to be topping out at that level last week. MSNBC lies and says the market did not break through the 50dma. You be the judge. To us it looks like the 47dma is no longer a support level but instead has become the resistance level or a topping trend (head and shoulders) line.
S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=
We think the next stock market support level will be down at Nov 4, 2010 levels about another 7% lower. But actually the main support starts about 17% lower than yesterday's close.
The high prices we are seeing are not due to high prosperity causing demand. The high prices are due to QE2 (easy credit) which is about to end and the artificial interruption of energy supplies by the socialists in the oval office. We need to warn you now to liquidate gold and silver as this could be like the market in 73 or 78 when the markets rose and then hit old bottoms. Under Jimmy Carter's malaise he cut energy supplies just as Obama is doing. The current move is in anticipation of a repeat of 1981. That was a one-time occurrence because the USA went off the gold standard in 1970 under President Nixon. The success or President Ronald Reagan was due to his selection of intelligent advisors not socialists and gold fell rapidly from $800/oz to $200/ox and stayed very low for almost 20 years. President Reagan was a supply-side advocate and ended the artificial shortages that president Jimmy caused in everything from toilet paper to gold.
World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. That means 60% of the stock market rise from the 2009 lows could evaporate as the initial rise evaporated under Jimmy Carter. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Asian markets were mixed last night. China up 1.3%, Hong Kong up 1.2%, India down -0.2%, and Japan down -0.5%.
European markets are up this morning in a range of about 0.1% to 1.1% half way through their day.
US pre-market futures are up slightly at about 0.3 % at 7:30 AM EST.
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