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Cutler's Stock Market Blog Updated as of: Thursday - July 22, 2010 - 4:15pm(est)
Cutler's Stock Market Blog (Archive #1) Nov 27, 2008 thru Feb 12, 2009)
Cutler's Stock Market Blog (Archive #2) Feb 11, 2009 thru Mar 19, 2009)
Cutler's Stock Market Blog (Archive #3) Mar 18, 2009 thru May 03, 2009)
Cutler's Stock Market Blog (Archive #4) May 04, 2009 thru Oct 08, 2009)
Cutler's Stock Market Blog (Archive #7) Mar 28, 2009 thru Jul 22, 2010) Cutler's Stock Market Blog (Archive #6) Oct 09, 2009 thru Dec 31, 2009) Cutler's Stock Market Blog (Archive #7) Jan 03, 2010 thru Mar 18, 2010)
➜ ➜ HERE IS MY TAKE ON CRAMER vs STEWART
MARKET MANIA 2010-7-22 (Thursday Evening Update) JULY MARKET MANIA DOW INDUSTRIALS ZOOM HIGHER BY 201 POINTS TO 10322
Phil Roberts (Barclays Capital) - CNBC Interview
Markets at Important Tipping Points (view this excellent interview here)
July 22 (Thursday) – The stock market rebounded with a solid rise of 2% in the DOW INDUSTRIALS and even better gains in the broader market averages. Several important companies reported solid earnings this morning with an upbeat toen already present from higher European markets. When the market shrugged off disappointment in both the Jobless Claims & Leading Indicators stock buyers emerged en masse. As we recently pointed out the market is in a tug-o-war zone as it tries to redefine the uptrend that has thus far failed in April. With most key indices now bumping against core technical overhead resistance and the stock market mildly overbought, the Friday session is an important test. This is critical because there are 2 potential Bearish chart formations being traced out: a diamond top (currently active pattern) and a broadening top (only possible if the 10600 level is exceeded). To break away from these requires work and days like today do start to change the price pattern relationships. As the technician, Roberts points out (link above), COPPER is showing upside breakout indications and that has the potential to increase confidence in an economy that has been sending out signals of weakness from every direction. GOLD rallied today by $9 to close at $1195. OIL declined .21 to $79.09 a barrel. Democrats are starting to panic about the economy not recovering in time for the election. Some are now calling for the Bush tax cuts to be extended. Amazing how even Democrats can think logically and sensibly when their backs are up against the wall. The anti-business policies of the Obama administration have contributed to the economic malaise. Jobs have been negative impacted by the Progressive policies of the Democrats in power… yet they still want to blame Bush. Yet somehow, we hear some Democrats now wanting to extend the Bush tax cuts. Democrats are liars, thieves and cons. The Progressive agenda is the most dangerous philosophy in America today and it must be stopped. On November 2 all Progressives must be voted out – every last one of them! CHART TO ANALYZE - (No Chart Today).
TODAY’S REQUIRED READING – The Left’s Employment Views Exclude Job Creator Input / by Rich Karlgaard “What’s lost in these arguments about jobs, especially by those on the left, are the voices of the jobs’ creators themselves. Those would be the employers. Let me repeat: In a national debate about jobs and job creation, hardly anyone is talking to job creators about jobs!” The Forgotten Employer
“The forgotten man in this crisis is the employer. We forget him at our danger.” Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Environmental Groups are why there has been no nuclear energy program in America.
Reject the Progressive / Liberal Agenda. The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED!
Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weine,rStark,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check Next Blog Update ➜ Sunday Evening – You May Email Me at
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2010-7-18 (Sunday Evening Update) JULY MARKET MANIA DOW INDUSTRIALS HIT SKIDS DECLINING BY 261 POINTS TO 10097
Dick Bove (Rochdale Securities) - CNBC Interview
Bank Earnings Disappointing (view this excellent interview here)
July 18 (Sunday) – Ever since the top in April the stock market has been on a streaky roller coaster ride. The DOW INDUSTRIALS took a big hit on Friday and the broader market indexes were down a higher percentage. The summer doldrums have a heightened sense of volatility this year. Market internals are negatively diverging much the way they did prior to the April high. Many of the talking heads continue to believe that the stock market is in a temporary corrective phase to consolidate prior to a surge to new highs later in the year. I find that analysis difficult to subscribe to. We continue to recommend a very defensive strategy. It feels as if another downside collapse like was experienced on the flash crash is in the air. GOLD was also under heavy pressure losing $15 to close at $1194. OIL declined to $75.80 a barrel. The stream of economic data continues to disappoint. This week is light on new data until Thursday except for housing which has several key reports to be released. Jobless Claims & Leading Indicators highlight the Thursday reports. There has been a rally in the Euro and a lull in the financial problems facing Eurozone countries but the troubles there are far from over. Additionally, weakness in Japan and China are being reflected in their stock markets which have been among the worst performers worldwide. These are worrisome indicators given that we are fast approaching the seasonally troublesome window for stocks from September through November. Obama’s green jobs initiative is like a bad venture capital fund that invests recklessly in politically connected 'green' projects / it loses billions of the public's money and the precious few jobs it creates are costing unfathomable dollars on a per job calculation / In this column, ‘He Came, He Saw, He Spent’ the poor use of public money to create precious few jobs is exposed. It states: "Obama said his benevolence would create 300 jobs in Holland (MI) – but that’s $500,000 per job. At least it’s a bargain compared to the $1.25 million per job Obama spent on two solar companies in Arizona over the July 4 weekend.” CHART TO ANALYZE - (The Real Mega-Bears). Nearly a month since we visited this chart (courtesy of dshort.com) and we find that the current stock market pattern is still tracing out a pattern similar to the historical mega-Bear markets. If we are to conclude that the pattern will continue then we must also conclude that the next few years for stocks are poised to be difficult and with much lower prices ahead. THERE WILL NO BLOG on MONDAY – TUESDAY - WEDNESDAY
NEXT BLOG UPDATE is Thursday Evening
TODAY’S REQUIRED READING – Left Wing Activists Intimidate Minorities from Joining Tea Party / by Alfonzo Rachel “The reason there aren’t that many people of color at tea parties isn’t because of the hostility they’ll face from the people on the right attending, it’s because of the hostility they’ll face from the left who don’t.” The Fashion of Reverse Racism and Victimhood
“So many claim to revere Dr. King, yet seem to ignore his most capital statement.” Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Environmental Groups are why there has been no nuclear energy program in America.
Reject the Progressive / Liberal Agenda. The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED!
Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weine,rStark,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check Next Blog Update ➜ Txursday Evening – You May Email Me at
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2010-7-15 (Thursday Evening Update) JULY MARKET MANIA INDUSTRIALS 7 DAY WIN STREAK HALTED OFF 7 POINTS TO 10359
Bruce Rauner (GTCR) - CNBC Interview
Is Obama Admin Anti-Business? (view this excellent interview here)
July 15 (Thursday) – First there was a 7 day losing streak, then a 7 day winning streak. The DOW INDUSTRIALS nearly made it 8 straight when it almost snatched victory from defeat with a late day surge that narrowed a potential 100+ point loss to close with a minor setback of just 7. Late rumors of an SEC settlement with Goldman Sachs simultaneous to news of BP indicating it might have contained the oil well leak. All of this late activity inspired short covering and erased the negative effects of both the Empire State Mfg Survey and the Philly Fed Survey released in the morning. In other news, the FINREG bill passed and will be signed into law next week. This bill does not do what has been purported, it wouldn’t have stopped the last financial meltdown…. And it won’t stop the next one either. Volume has remained glaringly light on the rally and there are negative technical divergences forming, similar to before the April top. GOLD was virtually unchanged at $1209. OIL closed slightly lower at $76.83 a barrel. Earnings reports have been decent thus far and the stream of reports kicks into higher gear next week. Consumer Sentiment & CPI will be released on Friday. Political rhetoric is heating up and the Democrats know they are in big trouble. In fact, without anything to sell to the public to help their candidates they’ve decided to labnbel 75% of the American population as ‘racists.’ This is a desperate strategy. Rather than explain it now… take a viewing of this eye-opening clip (link). Charles Nenner calls for DOW 5000 in 2.5 years (link). CHART TO ANALYZE - (No Chart Today).
TODAY’S REQUIRED READING – Historical View Illustrates Why Americans Reject Progressives / by Michael Barone “The Progressives explicitly repudiated the Founders’ vision of limited government. They argued that government needed to redistribute property, to take money from one group of citizens to help others, and to regulate economic activity in ways previously considered unconstitutional.” The Return of the Jerffersonian Vision and the Rejection of Progressivism
“The majority of the American people seem to firmly agree with the Founders’ insistence that no one should be deprived of life, liberty, or property without due process of law. And so we can take satisfaction that most of our fellow citizens in our freeholders’ republic still hold these truths to be self-evident.”
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Environmental Groups are why there has been no nuclear energy program in America.
Reject the Progressive / Liberal Agenda. The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED!
Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weine,rStark,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check Next Blog Update ➜ Sunday Evening – You May Email Me at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
2010-7-11 (Sunday Evening Update) JULY MARKET MANIA INDUSTRIALS UP 4TH STRAIGHT DAY ADDING 59 POINTS TO 10198
Alan Greenspan (Former Fed Chairman) - CNBC Interview
Is Economic Recovery Stalling? (view this excellent interview here)
July 11 (Sunday) – The stock market just produced its best week of the year creating its 2nd attempt at upward momentum since the April top. The DOW INDUSTRIALS has surged 500 point in 4 days. The bad news is that volume on the rally was about 1/3 lower that recent trading history and markets now face key overhead resistance while currently in a technically overbought situation. The battle of the Bulls and Bears is now being fought between the 40 yard lines. However if history is a guide, stock prices are more likely to be lower, not higher, in 3 months. GOLD rebounded $13 an ounce to $1212. OIL closed the week firmly ending at $76.45 a barrel. Earnings season kicks off on Monday with the traditional first-out report from ALCOA (AA). The economic reports begin anew on Tuesday with the most anticipate reports later in the week covering Retail Sales, PPI, CPI and the dreaded weekly Jobless Claims. With unemployment stubbornly high and the economic recovery now in a malaise, Obama is running around the country blaming Bush again, even though his own policies have failed to accomplish much of anything except to ring up mountains of new long-term debt. TO SAVE AMERICA – ALL PROGRESSIVES MUST BE VOTED OUT IN NOVEMBER The business community is finally getting up the courage to stand up to the anti-business policies and rhetoric and regulations from the Obama administration. Watch this short clip of Mort Zuckerman giving a lesson to those schmucks on MSNBC. Derisive and divisive anti-business and class warfare rhetoric amped up from Obama from the first day he took office. Business leaders tried to work with the administration and ignored the obvious hostility to the business community in an effort to make it work. It isn’t working and now even Obama loyalists like General Electric CEO Jeff Immelt are speaking out. And so has the business roundtable, especially the Chamber of Commerce which represents a vast majority of small businesses in America. Since nearly 75% of all new jobs are created by small business it makes no sense that 1% of the $862 stimulus package was directed toward them. Now these businesses are being choked by heavy taxes and legislation that burdens them with fees and paperwork. Small business cannot function in such an oppressive environment and hence there will not be the employment growth coming from this vital sector. In fact, most of these companies will be lucky to maintain their current employee payrolls as the economy slows down further. Meanwhile Obama, Holder & company continue their policies of drumming up public agitation, this time on immigration. We have professional agitators in high office who desire to keep the country off balance by taking positions that go against a clear majority of the American public. This is true of their desire for a drilling moratorium as well as their pursuit of blocking the Arizona immigration law. Ignoring the history of Obama and his longstanding relationships with radicals and public agitators of every kind, like the reverse discriminatory racist Rev. Wright, to name one America-hater he spent 20 years with, was to allow radical extremists into high office in America. There can be no peace and civil discourse in America until we elect a new government that does not have as its top priorities agendas of racism, wealth redistribution and public agitation (ACORN, SEIU, highly organized immigration protestors) – all stemming from the Democrat party. A party which is now dominated by radical extremists. CHART TO ANALYZE - (No Chart Today).
TODAY’S REQUIRED READING – Obama Loves Himself, America Not So Much / by Charles Krauthammer “It began with the almost comical self-inflation of his presidential campaign, from the still inexplicable mass rally in Berlin in front of a Prussian victory column to the Greek columns framing him at the Democratic convention.” The Selective Modesty of Barack Obama
“Obama’s modesty about America would be more understandable if he treated himself with the same reserve. But it is odd to have a president so convinced of his own magnificence — yet not of his own country’s.”
THERE WILL NO BLOG MONDAY – TUESDAY - WEDNESDAY
NEXT BLOG UPDATE is Thursday Evening
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Environmental Groups are why there has been no nuclear energy program in America.
Reject the Progressive / Liberal Agenda. The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED!
Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weine,rStark,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check Next Blog Update ➜ Thursday Evening – You May Email Me at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
2010-7-8 (Thursday Evening Update) JULY MARKET MANIA DOW INDUSTRIALS RALLY SHARPLY GAINING 120 POINTS TO 10138
Mohamed El-Erian (CEO - PIMCO) - CNBC Interview
Economy & Markets (view this excellent interview here)
July 8 (Thursday) – Just as we said that sooner or later the stock market would experience one of those powerfully traditional 3-day Bear Market rallies… Voila! The DOW INDUSTRIALS has surged nearly 500 point in 3 days. The argument as to whether this is the start of a new sustainable advance or merely a technical reaction to a deeply oversold technical condition begins anew. The slight reduction in weekly Jobless Claims gave equity buyers cover from continuing the giant rally from Thursday. Trading volume was very light, a reminder of the same characteristics the market exhibited before making its April high. GOLD did not participate in the rally and lost another $5 an ounce closing at $1199. OIL was strong and pushed up to $75.87 a barrel. With the yield on T-Bonds very low, investors often get tricked into purchasing equities at a time when they are most risky as they search for yield. It has been a huge problem for years that retirees and savers have not been rewarded for their past success by having the ability to have their assets work for them on a low or no-risk basis. During Japan’s lost decade their interest rates were at or near zero and their financial markets have never regained their footing since crashing in 1989. The current rally in stocks appears to be an excellent invitation for investors to sell and reduce their equity exposure and for aggressive market players to establish or add to short positions. CHART TO ANALYZE - (No Chart Today).
TODAY’S REQUIRED READING – Making a Mockery of Pelosi’s Job Creation Concepts / by Arthur Laffer “While the unemployed may spend more as a result of higher unemployment benefits, those people from whom the resources are taken will spend less. In an economy, the income effects from a transfer payment always sum to zero. Quite simply, there is no stimulus from higher unemployment benefits.” Unemployment Benefits Aren’t Stimulus
“The flaw in their logic is that when it comes to higher unemployment benefits or other stimulus spending, resources given to the unemployed have to be taken from someone else. There isn't a "tooth fairy," or as my former colleague Milton Friedman repeated time &again, "there ain't no such thing as a free lunch." The government doesn't create resources. It redistributes them. For everyone who is given something there's someone who has that something taken away.”
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Environmental Groups are why there has been no nuclear energy program in America.
Reject the Progressive / Liberal Agenda. The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED!
Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weine,rStark,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check Next Blog Update ➜ Sunday Evening – You May Email Me at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
2010-7-5 (Monday Evening Update) JULY MARKET MANIA DOW INDUSTRIALS CONTINUE SLIDE OFF 46 POINTS TO 9686
Daryl Guppy (CEO, Cuppytraders.com) - CNBC Interview
DOW Tracing Out Depression Pattern (view this excellent interview here)
July 5 (Monday) – The stock market had a tough week losing ground every day and extended its losing streak to 7 session and 9 of the prior 10. Economic data continued to disappoint as even the drop in the headline number to 9.5% in the Unemployment Report only camouflaged that workers are rapidly dropping out of the work force, no longer looking for employment. With the average unemployed needing over 35 weeks to find a job, this is the highest number in the post-war era. Factory Orders also fell greater than expected. The housing market is very weak, retail sales have faltered and President Obama is running around the country promoting what he calls the ‘summer of recovery’. The American people see this as out of touch. Even GOLD got roughed up last week as selling assets moved to a take no prisoners’ mentality – the precious metal now at $1207. OIL also unable to maintain recent strength has retreated to $71.53 a barrel. It is eye-opening that the stock market cannot muster much of a rally effort from deeply oversold technical conditions. Sooner or later we’ll get one of those powerful 3-day bear market rallies….But when? We remain negative on the stock market keeping a near-term target of 9300. We believe stocks locked in their 2010 highs back in April. This week is fairly light on new economic reports so less of an impediment to attempt to hold the line in the equities markets. Of course, consistent weakness coming from Asia and Europe are keys to driving the loss of enthusiasm for worldwide economies. We’ve long ago recommended withdrawing from most stocks except for mining plays and short-side plays using bearish ETF shares on the indexes. CHART TO ANALYZE - (S&P 500 Railroads). This chart (courtesy of dshort.com) reveals a very troubling situation for stocks and the economy. This index of the rail sector, a leading sector of the economy appears to be repeating the pattern it traced out in 2008, just before it lost more than 50% of its value over the following 5 months. A failure of this sector would confirm that the economic recovery has stalled and that troubles for investors could be getting a whole lot worse.
TODAY’S REQUIRED READING – Exposing the Fallacy of the New Financial Legislation / by Robert Samuelson “"These reforms making their way through Congress will hold Wall Street accountable so we can help prevent another financial crisis like the one that we're still recovering from." -- Barack Obama, June 25” “It is a myth to think that the new financial "reform" legislation, assuming it passes the Senate, will insulate us for all time against financial panic and crisis.” Financial “Reform” – or Revenge?
“The trouble is that -- contrary to conventional wisdom -- "too big to fail" was just a symptom of the crisis, not its basic cause. That was old-fashioned bad lending: home loans to borrowers who couldn't repay. The panic arose because no one knew the size or location of the losses, now estimated in excess of $1 trillion. Ironically, the legislation may weaken the government's ability to quell future panics by restricting -- in highly technical ways -- the Fed's authority to lend to panic-stricken institutions in the midst of crisis."
THERE WILL NO BLOG on TUESDAY & WEDNESDAY
NEXT BLOG UPDATE is Thursday Evening
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Environmental Groups are why there has been no nuclear energy program in America.
Reject the Progressive / Liberal Agenda. The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED!
Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check Next Blog Update ➜ Thursday Evening – You May Email Me at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
2010-7-1 (Thursday Evening Update) JULY MARKET MANIA DOW INDUSTRIALS DECLINE 41 MORE POINTS TO 9732
Jordan Kotick (Barclays Capital) - CNBC Interview
Market Instability Rising (view this excellent interview here)
July 1 (Thursday) – The stock market extended its losing streak today, though to its credit the DOW INDUSTRIALS rallied more than 100 points off the low of the day. The economic data is been mostly uninspiring all week and today’s rise in the Jobless Claims and fall in the ISM Mfg Index didn’t help either. Market internals have deteriorated badly and technical patterns look negative. Meanwhile GOLD took a royal beating pounded down by $45 an ounce to $1198. OIL was also hit hard losing nearly $3 a barrel to $72.76 a barrel. We remain negative on the stock market with a near-term target of 9300, though the oversold condition could produce a technical bounce if there are no new economic landmines to sidestep. In all likelihood the stock market saw its 2010 highs back in April. Tomorrow is the big enchilada, the Employment Situation report. There are such negative expectations for this that unless the numbers exceed even the darkest views, this could be the excuse for the stock market to enjoy a brief oversold rally. There are a few elected politicians who understand that in order to survive states must cut spending and lower taxes to stimulate business development. Two state Governors recently gave excellent interviews which illustrate the new kind of leadership we need to see not only for the 50 states, but where it is most desperately required…. at the federal level. It will be worth your time to view the 2 clips below and listen to their policies. Indiana - Governor Mitch Daniels / watch clip / New Jersey - Governor Chris Christie / watch clip
CHART TO ANALYZE - (No Chart Today).
TODAY’S REQUIRED READING – Alabama’s Experience is Case for Small Government / by Dick Morris “The political impact of this incompetence has only just begun to be felt.” Obama’s Big Oil Spill Bungle
“The short answer is that every agency — each with its own particular bureaucratic agenda — was able to veto each aspect of any plan to fight the spill, with the unintended consequence that nothing stopped the oil from destroying hundreds of miles of wetlands, habitats, beaches, fisheries and recreational facilities.” Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Environmental Groups are why there has been no nuclear energy program in America.
Reject the Progressive / Liberal Agenda. The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED!
Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check Next Blog Update ➜ Monday Evening – You May Email Me at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
2010-6-27 (Sunday Evening Update) JUNE MARKET MANIA INDUSTRIALS END WEEK WITH SMALL LOSS OF 9 POINTS TO 10143
Dan Niles (Alpha One Capital Partners) - CNBC Interview
Debt Crisis & Markets (view this excellent interview here)
June 27 (Sunday) – Last week began with such promise as stock prices surged on the weekend announcement that China would loosen the peg of its currency against the DOLLAR. But before Monday’s trading day finished the DOW INDUSTRIALS lost a 150 point rally and it was all downhill the balance of the week. The tone has certainly changed in the stock market and the technical conditions now favor the downside. The world watched the G-20 meeting in Canada to see if Obama could convince the other leaders to keep borrowing and spending. Turns out the Europeans stuck to their guns and will set a goal of cutting their deficits by half in 2013. There is nothing left to borrow in Europe (watch the Dan Niles clip above discussing this topic). On Friday the downward GDP revision to 2.7% was hugely disappointing. Evidence increases that the economic recovery is flailing. Why even Joe Biden now says there won’t be much job recovery anytime soon. Too bad the Democrats wasted so much stimulus money padding the pockets of their political advocacy groups and pet projects instead of spurring small business and creating growth initiatives.
This is a big week for updating economic statistics culminating with the big-mama on Friday, the Employment Situation report. Rest assured there will be lots of market volatility as investors weigh-in the new data from Pending Home Sales, Construction Spending, Factory Orders, Consumer Confidence and a few others. While equities showed weakness there was a rush to fixed income instruments and the 10-Year Treasury was down to around 3%. Meanwhile the precious metals continued to shine and GOLD was a standout sector of the day climbing $12 an ounce to $1256 (we maintain upside target of $1305). OIL was the star of the day adding over 3% to $79.19 a barrel. We remain negative on the stock market. CHART TO ANALYZE - (No Chart Today).
TODAY’S REQUIRED READING – How Incompetence and Extreme Ideology Fails Americans / by Victor Davis Hanson “That's about where we are now, with our president playing a character right out of Greek tragedy, who, true to form, is railing about the unfairness of it all.” Obama’s Greek Tragedy
“The reality of Barack Obama is that he was an inexperienced community organizer with an undistinguished record as a Senate newcomer. A perfect storm of popular anger at eight years of George Bush, a lackluster John McCain campaign, Obama's landmark candidacy as an African-American, a disingenuous campaign promising centrist and bipartisan governance, and the financial meltdown in 2008 got the relatively untried and unknown Obama elected." THERE WILL NO BLOG on MONDAY – TUESDAY - WEDNESDAY
NEXT BLOG UPDATE is Thursday Evening
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Environmental Groups are why there has been no nuclear energy program in America.
Reject the Progressive / Liberal Agenda. The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED!
Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check Next Blog Update ➜ Thursday Evening – You May Email Me at
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2010-6-24 (Thursday Evening Update) JUNE MARKET MANIA DOW INDUSTRIALS HIT HARD FOR 145 POINTS TO 10152
Howard Ruff (The Ruff Times) - CNBC Interview
Markets Outlook & Sentiment (view this excellent interview here)
June 24 (Thursday) – Even though the stock market began the week with a huge 150 point rally Monday morning, we find that by Thursday’s close the DOW INDUSTRIALS lost a net of 300 points in 4 days. Much of the economic data lately has been disappointing and even a small improvement in Jobless Claims wasn’t enough to fire up the buyers. Credit spread in Greece and Spain began to widen again and yields in the US bond market have been getting lower, a sign that once again people are scrambling for safety. The Fed decision to remain steady on interest rates was insignificant, though the language indicated renewed concern that economic activity was weaker. The Monday morning upside pop was a great opportunity to take advantage of our view that any rally should be used to lighten up on equity exposure (except for mining stocks and bearish plays). GOLD recouped $6 an ounce to $1243 as worldwide investors continue to use the precious metal as a refuge for asset protection (we maintain upside target of $1305). OIL closed at $76.51 a barrel. On Friday the GDP (revision) will be a key to determine how much weakness has crept into the economy. Consumer Sentiment will also provide important insight. Risk remains high for stocks. We have an initial downside target of 9300 for the DOW INDUSTRIALS. CHART TO ANALYZE - (No Chart Today).
TODAY’S REQUIRED READING – Environmental Groups Are Never Held Accountable / by Bill Frezza “Apparently errant oil companies make for better villains than errant environmentalists.” BP, Environmentalism, Social Responsibility & Accountability
“As an exercise in social responsibility, imagine that an industry inadvertently killed - one million people. Imagine that they did this every year for twenty five years, making them second only to Mao Zedong as the top mass murderer in history. Should such a group be held accountable? Should the errors leading to those deaths be corrected?” Apparently not if the killer is environmentalism.
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Environmental Groups are why there has been no nuclear energy program in America.
Reject the Progressive / Liberal Agenda. The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED!
Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check Next Blog Update ➜ Sunday Evening – You May Email Me at
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2010-6-20 (Sunday Evening Update) JUNE MARKET MANIA DOW INDUSTRIALS QUIETLY ADVANCE 16 POINTS TO 10450
David Miller (Cheviot Asset Management) - CNBC Interview
Markets Senses Unfinished Business from 2008 (view this excellent interview here)
June 20 (Sunday) – Now that the stock market has moved up for 2 weeks off the low the debate increases. Was the 12% decline an interruption on the way to new recovery highs, or was the April top the zenith which marked an important turning point to reinvent the Bear market? While it is human nature to be optimistic, there are alarming indications that the equity market has entered into a new declining phase. Looking at the weakness in Chinese stocks recently it is hard to conceive that a story of growth can occur without some evidence of leadership from Asia. Then there are the subtle data points of low volume on the recent rally, especially on the quadruple expiration which usually produces greater activity. The decline in some economic indicators raises questions as to the substance of the economic recovery being touted by the Obama administration. Housing Starts declined; something that should not be happening at this stage in a legitimate recovery. GOLD rose another $11 an ounce to $1257 closing again at a new all-time record high (we maintain upside target of $1305). We maintain a Bullish posture in precious metals and emphasized this sector for investment portfolios while remaining negative on the general equities markets. OIL rallied up to $77.35 a barrel. This week investors will focus on the FOMC Announcement on interest rates. There’s also some key monthly housing data and then the Thursday Jobless Claims as well as Durable Goods Orders. Our view is that the current rally is the 2nd chance opportunity for those who didn’t get some stocks sold back in April near the highs. Things may have quieted down on the European debt problems as far as headline news goes, but the situation there is far from over.
ENVIRONMENTAL ACTIVIST GROUPS HAVE NEGATIVELY IMPACTED AMERICA’S ENERGY POLICY We've lost 30 years, largely due to environmental activist groups. Environmentalists stopped nuclear development in its tracks. They also forced drilling away from more manageable on-shore and in-shore areas / to the riskier deep waters. Environmentalists needlessly caused restrictions on DDT use which resulted in millions of deaths in Africa from Malaria. Environmentalists resorted to data manipulation to con the world that unusual warming trends were happening. Fortunately, ClimateGate exposed the fraud and corruption. ClimateGate exposed the deceptive practice of data manipulation by scientists in collusion with politicians and left-wing activists to promote socialistic global governance, while actively seeking agreements for large payment transfers from developed to corrupt underdeveloped countries based upon fraudulent scientific claims. Environmental activist groups for decades have been the source cause of massive problems in the wake of their own activism, but never look back to assess these damages. They are NEVER held accountable. Environmentalists always portray themselves as heroes and saviors and lure naive citizens into their radical leftist political movement under the cover of “green” and the heartfelt tugs of 'do-goodness' and ‘saving the earth”. However, through their own political activities, close associations with many leftist radical groups and the co-opting of the Democratic party and labor unions - they are directly responsible for many poor policy decisions, setbacks in establishing sound energy policy and are a negative force in America as political agitators, intimidators and shakedown artists in connection with the power grab of the Progressive movement. When will Americans start holding Environmental groups accountable? Read: How to Expose a Warmist: Andrew Bolt Interviews Australia's Al Gore CHART TO ANALYZE - (Comparing the Real Mega-Bear Markets). We return to this excellent historical chart overlay (courtesy of dshort.com). Fascinating how in the big picture view, the stock market is tracing out a similar pattern to what transpired after the Crash of ’29 and the Japanese collapse of ’89. History does have a way of repeating itself. If that is true, the expected direction for stocks ahead is lower.
TODAY’S REQUIRED READING – Democrat Realizes Obama Not Qualified / by Mort Zuckerman “The president is well-intentioned but can't walk the walk on the world stage.” World Sees Obama as Incompetent and Amateur
“The United States for 60 years has met its responsibilities as the leader and the defender of the democracies of the free world. We have policed the sea lanes, protected the air and space domains, countered terrorism, responded to genocide, and been the bulwark against rogue states engaging in aggression. The world now senses, in the context of the erosion of America's economic power and the pressures of our budget deficits, that we will compress our commitments. But the world needs the vision, idealism, and strong leadership that America brings to international affairs. This can be done and must be done. But we are the only ones who can do it.”
THERE WILL NO BLOG on MONDAY – TUESDAY - WEDNESDAY
NEXT BLOG UPDATE is Thursday Evening
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Environmental Groups are why there has been no nuclear energy program in America.
Reject the Progressive / Liberal Agenda. The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED!
Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check Next Blog Update ➜ Thursday Evening – You May Email Me at
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2010-6-17 (Thursday Evening Update) JUNE MARKET MANIA INDUSTRIALS SURGE LATE TO TACK ON 24 POINTS TO 10434
Jim Rogers (famous investor) - CNBC Interview
OIL / Alternative Energy / the EURO (view this excellent interview here)
June 17 (Thursday) – Stocks have finally managed to lift off the recent low as noises from European financial problems have quieted down for the moment. While this may bring on some renewed enthusiasm for the markets, there are also consequences. First off, the seriously oversold market condition has been erased and prices are now overbought. Secondly, most market indicators are starting to buck up against key overhead resistance lines. Third, volume has again been poor during the latest advance in equities. This implies that stock prices are offering investors another chance to exit as opposed to launching a new significant market move higher. Finally, stock prices are trying to rally back to recent recovery highs even though some economic statistics are now pointing toward a flailing recovery. Today’s Jobless Claims numbers went in the wrong direction and the Philly Fed Survey declined sharply. Tomorrow is quadruple expiration and could mark the high point of the current rally. GOLD jumped $15 an ounce to $1246 a new all-time closing high (we maintain upside target of $1305). We have maintained a very Bullish posture in precious metals and emphasized this sector for investment portfolios while remaining negative on the general equities markets. OIL fell to $76.50 a barrel.
BUSINESS PROSPECTS UNSOUND UNDER OBAMA’S ANTI-BUSINESS POLICIES Business prospects under the current administration are not sound. The Liberal Democrat penchant for demonizing business every time they need to fund a new government program has been magnified geometrically under Obama. Years from now (hopefully sooner) most American's will realize that Obama's ideology is totally screwed up and his lack of experience in running or managing ANYTHING except a goon-squad to shakedown Chicago banks to get them to make risky loans was exposed by his own gross incompetence. The glib talker is only an expert at promoting class warfare, pulling radicals into the White House as Czar's and advisors and alienating all of our true allies. Intellectual, yeah right! People are realizing we elected someone to run the country that has never made an executive decision or met a payroll - his only experience in management was running that bank shakedown operation in Chicago with a purpose to pressure banks into making those risky loans to folks who could not afford them. That's excellent experience for someone interested in seeding and contributing to a housing crisis that eventually brings on a total financial meltdown…. but not very useful anywhere else. Meanwhile, Obama claims the entire economy was brought down by ”the irresponsibility of a few folks on Wall Street”, a statement which is a fundamentally dishonest demonization that doesn’t not even come close to honestly explaining what really caused the meltdown. Perhaps he should examine some of his own activities when he was alongside ACORN in the bank shakedown biz. / Must Read: Daniel Henninger / The President’s Animosities. CHART TO ANALYZE - (No Chart Today).
TODAY’S REQUIRED READING – Exposing Obama as Snake Oil Salesman / by Thomas Sowell “By the same token, domestic bungling by Barack Obama sends a dangerous signal to countries hostile to us, in addition to the signal sent by his displays of amateurism on the world stage.” Oil vs. Snake Oil
“If leaders of other nations can't depend on the United States, then they need to make the best deal they can with our enemies. They understand that preserving their nation's security is a leader's top priority, even if Barack Obama doesn't.”
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Environmental Groups are why there has been no nuclear energy program in America.
Reject the Progressive / Liberal Agenda.
The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED! Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz.
Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare.
Next Blog Update ➜ Sunday Evening – You May Email Me at
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2010-6-12 (Sunday Evening Update) JUNE MARKET MANIA DOW INDUSTRIALS TACK ON GAIN OF 38 POINTS TO 10211
Jordan Kotick (Barclays Capital) - CNBC Interview
Warning Signs for Europe (view this excellent interview here)
June 12 (Sunday) – The stock market finally strung together 2 consecutive up days. This action provides comfort to those who believe stocks have merely undergone an overdue correction of double-digit size prior to launching a phase that will take prices up to new recovery highs. Unfortunately, volume was not convincing and more consistent with what would typically be termed as an oversold bounce. There is tremendous overhead resistance and the trading mentality has shifted form buying the pullbacks to selling the rallies. Everyone is closely monitoring the foreign sovereign debt crisis and how international currencies are behaving. The clip (above) illustrates that more countries are facing financial difficulty and markets are reflecting higher risk for assets in those countries. Those with a long-term vision correlate the trends of unsustainable debt and entitlements across the ocean with the perilous trends here in America. We saw very disappointing Retail Sales numbers last week as a sign that our economy is not out of the woods, and talk of a double dip recession is being given more credence. GOLD returned to favor on Friday gaining $10 an ounce to close at $1228 (we maintain target of $1305). OIL closed the week out at $74.20 a barrel. There are many new important economic reports later this week that will go a long ways toward determining if there is an economic recovery in progress of if the bounce off of the depressed levels of last year has run its course. Housing Starts, Producer Prices, Industrial Production, Leading Indicators, Consumer Prices Index, Philly Fed Survey and the dreaded weekly Jobless Claims report will all hit the tape on Wednesday and Thursday. If even 2 of those show economic weakness, chances are stocks will behave badly and kill the little rally now in progress. We remain negative on equities and urge very defensive portfolios, though we keep long positions in the precious metals stocks. CHART TO ANALYZE - (Bond Spread: 30-Year Treasury vs High Yield Index). This is an interesting chart (courtesy of dshort.com) that monitors the spread between the low risk and highest risk debt instruments. It is used to measure perception of investor appetite for risk and generates signals for determining stock market risk levels.
TODAY’S REQUIRED READING – Why Gold Now Reflects the Credit Rating of World Gov’ts / by Bill Fleckenstein “The worldwide propensity to attempt to solve structural problems with monetary "solutions" means that until the printing presses are taken away and we decide to pursue sound, long-term policies, both in the U.S. and elsewhere, money printing will remain the order of the day -- which is why we need to own gold to protect ourselves.” Gold: Ultimate Overdraft Protection
“One of my favorite passages argues that gold is "not really an investment per se -- it's an escape from government imprudence. You don't own gold because you expect it to do remarkable things -- you own it because you are scared of your government doing remarkable things.” “This doesn't stop gold from being volatile, nor does it guarantee that every day it will increase in price or rally on the days that one thinks it ought to. But over time it has, and it will protect folks' wealth from consequences of the printing press.”
THERE WILL NO BLOG on MONDAY – TUESDAY - WEDNESDAY
NEXT BLOG UPDATE is Thursday Evening
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Reject the Progressive / Liberal Agenda. Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check. / The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED! Next Blog Update ➜ Thursday Evening – You May Email Me at
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2010-6-10 (Thursday Evening Update) JUNE MARKET MANIA DOW POWERS UP ON LIGHT VOLUME BY 273 POINTS TO 10172
Sen. Jugg Gregg (R-NH) - CNBC Interview
FINREG’s Impact on Economy (view this excellent interview here)
June 10 (Thursday) – In recent days the stock market has fervently tried to launch a rally off recent trading lows only to find it losing steam in the final hour to kill the deal. Today was a different story. With positive impetus from decent economic data coming from China and a min-reversal turning the Euro higher, U.S. stocks got off to a buoyant opening even though the Jobless Claims were not too hot. With pressure on short-sellers to cover from those who shorted near the lows thinking the market would break lower and those who shorted closer to the highs who did not want to see hard earned profits disintegrate there were bids all day. The DOW INDUSTRIALS recovered 2.76 with the Adv/Dec Ratio was very strong at 6-to-1 on the NYSE. Although most mining stocks closed higher with the stock market, GOLD prices choked today by $15 an ounce to close at $1218 (we maintain target of $1305). OIL was strong closing back above $75 a barrel. Before we get too excited and pronounce the market correction as over, it must be noted that volume today was very light, especially for such a strong price achievement. With the stock market oversold for so long sooner or later it would accomplish an impressive upside close. But we stick with the view that the DOW is destined for 9300 and would use gains to sell stocks that are still in the portfolio and to establish new hedge or short positions. The economy is not showing a ‘V-shape’ and in fact, the flow of oil in the gulf has caused Obama to put a moratorium on drilling which is going to cost a lot of jobs. This is the latest wrong-headed move by a President who doesn’t think through the consequences of his actions. Cheap populism may be a political strategy to appease the radical left wing base, but the actual consequences will only be devastating to an economy that is barely struggling to show some life. CHART TO ANALYZE - (No Charts Today).
TODAY’S REQUIRED READING – Exposing How Progressive’s Bad Ideas Hurt America / by George Will “Uncertainty is a consequence of hyperkinetic government, which is a consequence of the governmental confidence that is a consequence of progressivism. The premise of progressivism is that all will be well if enough power is concentrated in Washington, and enough Washington power is concentrated in the executive branch, and enough really clever experts are concentrated in the executive branch. This is why the government's perceived impotence concerning the gulf oil spill is subversive of the Obama administration's master narrative.” Jobs Report a Nightmare for Obama Progressivism
“Progressives generally, and Obama especially, encourage expectations as large as the 1,428-page (cap-and-trade), 1,566-page (financial reform) and 2,409-page (health care) bills they churn out as "comprehensive" solutions to this and that. For a proper progressive, anything short of a "comprehensive" solution to, say, the problem of illegal immigration is unworthy of consideration. For today's progressive president, the prospect of a jobless recovery is a comprehensive nightmare.” Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Reject the Progressive / Liberal Agenda. Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check. / The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED! Next Blog Update ➜ Sunday Evening – You May Email Me at
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2010-6-6 (Sunday Evening Update) JUNE MARKET MANIA DOW INDUSTRIALS SMASHED LOWER BY 323 POINTS TO 9931
Art Cashin (UBS Financial Services) - CNBC Interview
Reaction to Weak Jobs Report (view this excellent interview here)
June 6 (Sunday) – Each time the stock market has a big rally, hopes for a turnaround are quickly dashed as prices quickly skid lower. Things looked dismal coming into the Friday session as Hungary confirmed rumors of being close to default. Then the big enchilada, This Employment Situation Report disappointed investors with lackluster job creation and that set up the market for another tailspin. The Euro broke below 120 and questions about possible stability of the Euro zone grow. The DOW INDUSTRIALS took a drubbing losing over 3% or 323 points with market internals weak exhibiting 9-to-1 favoring losers on the NYSE. We’ve long been prepared for the stock market decline which is unfolding, yet we also remained positive on GOLD which again bucked the equities markets by adding $12 an ounce to $1220 (we maintain target of $1305). OIL fell 4% to $73.91 a barrel. Technically speaking, many of the key market indexes are sitting on or near important support levels so there is the chance that prices may hold around here and try to turn back higher. We would not hold our breath waiting for this. There are no imminent resolutions to the fundamental problems lurking and jitters are climbing. At this point any rally is only a new opportunity to sell positions that were not previously unloaded or to execute short positions. With not much new economic data expected early in the week the tone will be directed by how overseas markets perform, especially in Europe.
This Excellent Production is Brilliant !!! / EVERYONE MUST WATCH THIS CLIP Flotilla Choir presents: We Con the World http://www.youtube.com/watch?v=FOGG_osOoVg
CHART TO ANALYZE - (No Charts Today).
TODAY’S REQUIRED READING – How GreenMail Politics has Hurt Europe / by Holger Krahmer “Of course, this fits well with the agenda of the environmental left, which wants to limit consumer choice for wealthy Westerners and prevent the poor in developing countries from kick-starting economic growth. For too long, Europe has been complicit in perpetuating these deeply inhuman policies. It will be an even greater economic and humanitarian shame if America follows?” ’Green New Deal’ is a Raw Deal for the U.S.
“But facts rarely stop green pressure groups once they fixate on a target. The eco-activists pressure Western companies - via greenmail campaigns - to stop purchasing these goods, thus harming the economic prospects of Southeast Asia. The activists believe this is part of the larger Green New Deal they are orchestrating. But it's a raw deal for the workers of developing countries and the consumers of Europe and the United States. And it does nothing to protect the environment. Of course, this fits well with the agenda of the environmental left, which wants to limit consumer choice for wealthy Westerners and prevent the poor in developing countries from kick-starting economic growth. For too long, Europe has been complicit in perpetuating these deeply inhuman policies. It will be an even greater economic and humanitarian shame if America follows suit.”
THERE WILL NO BLOG on MONDAY – TUESDAY - WEDNESDAY
NEXT BLOG UPDATE is Thursday Evening
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Reject the Progressive / Liberal Agenda. Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check. / The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED! Next Blog Update ➜ Thursday Evening – You May Email Me at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
2010-6-3 (Thursday Evening Update) JUNE MARKET MANIA DOW INDUSTRIALS TREAD WATER CLOSING UP BY 5 POINTS TO 10255
Jordan Kotick (Barclays Capital) - CNBC Interview
More Trouble For Europe? (view this excellent interview here)
June 3 (Thursday) – Once again a huge move in stocks, 225 points in the INDUSTRIALS, gave hope to those claiming that equities are completing a run-of-the-mill correction. Today the market remained volatile as a yo-yo and closed higher by 5 points with positively biased market internals. Traders are willing to take positions based on oversold situations, but those have a tendency to wear off after 2 or 3 days. The key factor is that spreads are widening in some of the financially tenuous European countries and this keeps the threat of a selling trigger always overhanging stocks. We thought there would be a brief rally period in here and so far the market is trying to lift away from the most recent lows. Still, we believe that the DOW is likely to decline to 9300 at some point and that keeps us on the defensive. GOLD took a hit today dropping $12 an ounce to $1208, though we remain positive on this sector with a near-term target of $1305. OIL is now $74.65 a barrel. You may recall that during the late phases of the market recovery that appears to have topped out in April we pointed out every day that complacency was a danger sign. The low volatility and the small daily advances were setting up for a more risk-filled volatile time. Note that since the market started heading lower that volatility has magnified. Nearly every day the market ends in a 3-digit move. And even when the close is more moderate, the intra-day swings are wide and occur multiple times intra-day. Transitions from calm and stable markets to volatile behavior almost always coincide with a trend reversal. It will take a lot of technical work to reinstate the bullish trend that previous existed. Everybody is awaiting Friday’s Employment Situation Report and wondering how markets will react. Some are looking for a large increase in jobs, though there are important one-off aberrations to consider. Many questions remain about the impact of government hiring’s for the Census. It’s no surprise that this number will pad the report significantly. The deeper question surrounds the shady practices of those running the Census amid reports that some people have been hired, fired and rehired as many as 4 times… each time counting as a new jobs hire in the statistics. This is very shady behavior but nothing is too shady for an administration that has no experience managing a business or meeting a payroll, but all kinds of experience shaking down banks for community organizing activities and manipulating the public with creative deception. CHART TO ANALYZE - (No Charts Today).
TODAY’S REQUIRED READING – Illuminating the Failures of Euorpean Socialism / by Victor Davis Hanson “Only one question remains: At a time when Europe is discovering that its democratic socialism does not work, why in the world is the United States doing its best to copy it?” History Returns to Europe
“So suddenly the Greek financial meltdown, and the staggering debts that must be repaid, have alternately enraged and terrified northern European creditors. Even the most vocal Europhiles are quietly rethinking the entire premise of a European Union that offers lavish benefits but no sound method of paying for them.”
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Reject the Progressive / Liberal Agenda. Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check. / The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED! Next Blog Update ➜ Sunday Evening – You May Email Me at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
2010-5-31 (Monday Evening Update) MAY MARKET MANIA DOW INDUSTRIALS RALLY FALTERS SHEDDING 122 POINTS TO 10136
Robin Griffiths (Cazenova Capital) - CNBC Interview
Charting the Euro and S&P Index (view this excellent interview here)
May 31 (Monday) – After the huge turnaround on Thursday it has to be registered as disappointing that equities could not follow through with more gains coming into the long holiday weekend. Market internals were poor with a negative 2-to1 ratio. The mood was suppressed by the Fitch Ratings downgrade of Spain, which reinvigorated worries that a financial plague of sorts is moving across Europe and the economic impact that will have around the globe. Coming into Monday most world markets were trading calmly with only slight movements up or down. There is general acknowledgement that markets are oversold and that some effort to rally prices should be expected. Though many, including myself, would view such a rally as producing only temporary gains in what is re-emerging as a Bear market decline. GOLD currently stands at $1217, less than $100 an ounce from our near-term target of $1305. OIL is now approx. $74.50 a barrel. WOW! Listen to Wynn Resorts, CEO, Steve Wynn and his extraordinary poignant take on Washington. He even quotes Alexis de Tocqueville with this: “the American system of democracy will prevail until that moment when politicians discover that they can bribe the electorate with their own money.” One of the most disconcerting trends underlying the American economy right now came more to light this week with new data showing that U.S. personal income from the private sector has fallen to 41%, which is a record low level. This is not just another statistic in a laundry list of data points, this is a dangerous trend. This number tells us that like it or not, the United States is on a rapid path toward becoming a mega-welfare state. There cannot be sustained economic growth when the majority of income comes directly from government distributions. As the number of private sector producers decreases, taxes on them must keep increasing in order to support the ever-increasing obligations of the U.S. government. This is a deadly cycle.... one which must be halted and reversed.
Even more disturbing is that while the #1 priority of the Obama administration should be squarely on increasing business incentives and reducing burdens on employers and producers, they continue to push welfare-state policies like Obamacare, Cap&Fraud and Card-Check which all do the exact opposite. They put increased pressure on the private sector, increase uncertainty for them and result in a net depressive effect on the economy. All the happy rhetoric passing through Obama’s lips doesn’t mean a whit to the U.S. economy when the policies being pushed and prioritized are those which increase the size of the welfare state. Is anyone paying attention to the deterioration of life in the Eurozone? This is exactly why they are in such a heap of a mess. It’s also why after decades of liberal and union party rule that one by one, each European country is now voting out the socialists. The Europeans realize they made a huge mistake long ago and they don’t like what has happened. Suddenly, faced with deep financial crisis and gradual loss of personal liberties.... they want to reverse the trend by moving quickly to the right. Americans, take note! Even though this is a short trading week it is a huge one for economic reports. Tuesday brings the Auto Sales, ISM Manufacturing Index & Construction Spending. Wednesday has the Pending Home Sales and begins the onslaught of numbers relating to jobs, culminating with the critically important Employment Situation Report on Friday. Sandwiched in between on Thursday we’ll see new numbers on Jobless Claims, Productivity & Costs, Factory Orders & ISM Non-Manufacturing Index. Trust me; the stock market is in no mood to see anything that resembles a weakening of economic activity. Somehow though, I believe we will see some of that.... so this week is a true test of mettle for the markets and for the nerves of investors. CHART TO ANALYZE - (2 Charts / The Mega Bear Markets & Dow Industrials Long-Term Technical Perspective) –. These 2 charts (courtesy of dshort.com) speak for themselves. Note how the Mega-Bear pattern is tracing out a copy of the worst markets of the past. Then look at the long-term perspective and decide if the DOW INDUSTRIALS could be on the verge of another steep decline.
TODAY’S REQUIRED READING – Explains How the Western World Fell Into Financial Trap / by Mark Steyn “How did the Western world reach this point? Well, as my correspondent put it, we assumed that we were rich enough that we could afford to be stupid.” We’re Too Broke to Be This Stupid
“The green jobs, the gay parades, the jihadist welfare queens, the Greek public sector unions, all have to be paid for by a shrinking base of contributing workers whose children and grandchildren will lead poorer and meaner lives because of the fecklessness of government. The social compact of the postwar era cannot hold. Across the developed world, a beleaguered middle class is beginning to understand that it’s no longer that rich. At some point, it will look at the sheer waste of government spending, the other shoe will drop, and it will decide that it no longer wishes to be that stupid.”
THERE WILL NO BLOG on TUESDAY & WEDNESDAY
NEXT BLOG UPDATE is Thursday Evening
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Reject the Progressive / Liberal Agenda. Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check. / The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED! Next Blog Update ➜ Thursday Evening – You May Email Me at
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2010-5-27 (Thursday Evening Update) MAY MARKET MANIA DOW INDUSTRIALS ENJOY SUPER SURGE OF 284 POINTS TO 10258
Sen. Judd Gregg (R - NH) - CNBC Interview
Facts on Financial Reform Bill (view this excellent interview here / part 2 here)
May 27 (Thursday) – It was not long ago when the stock market was enjoying a nearly uninterrupted streak of monthly gains capped off by a stretch of 33 sessions higher in a span of 38. But in a matter of a few weeks over 1300 points was shed and today’s spectacular rally of 284 points only brings the DOW INDUSTRIALS to a 65 point higher close that last Friday. Today’s move was powerful with 88% of all stocks on the NYSE rising. Clearly the market was extraordinarily oversold and overdue. GOLD only advanced 1.40 to $1213. OIL rocketed up more than $3 a barrel to $74.90 level. The decline in Unemployment Claims was not very meaningful and the downward revision in GDP both emphasized growing concerns that economic recovery may be a fleeting dream. Friday will produce a trifecta of economic reports including Personal Income, Chicago PMI & Consumer Sentiment. The worldwide markets are due for some relief and we’d expect a few days of rally to give traders an opportunity to skim some short-term trading profits before the decline resumes in earnest. Monday is a holiday with stock markets closed. Meanwhile there are serious implications that the Obama administration is sitting dangerously on a felonious effort to swap a high level job (some say Navy Secretary) in exchange for Democrat Joe Sestak to get out of the Pennsylvania Senate primary. Sestak refused the job offer, won his primary and has stated a half dozen times on national TV in clear and simple terms that a job was offered by the White House. This is a huge problem for Obama, one that can be detrimental to the Obama team. Given that a vast majority of Americans strongly disapprove of Obama’s job thus far, the public would be quite interested to have a special prosecutor get to the bottom of the truth. CHART TO ANALYZE - (No Chart Today) –.
TODAY’S REQUIRED READING – Exposing How ObamaCare Hurts Small Business / by Dan Danner “This is why the National Federation of Independent Business (NFIB), on behalf of small business owners nationwide, has joined the lawsuit with 20 states mounting a constitutional challenge to this devastating new health-care law. This law is death by a thousand cuts for small business owners.” ObamaCare vs. Small Business
“Health-care reform is too important to be based on an unconstitutional mandate. Small businesses need the judicial system—if necessary, the U.S. Supreme Court—to overturn this law to protect them from having to pay for a statute that causes them more harm than good and ultimately infringes on all Americans' personal freedoms.” Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Reject the Progressive / Liberal Agenda. Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check. / The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED! Next Blog Update ➜ Monday Evening – You May Email Me at
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2010-5-22 (Sunday Evening Update) MAY MARKET MANIA INDUSTRIALS REVERSE SELLOFF ADDING 125 POINTS TO 10193
Nouriel Roubini (RGE, Chariman) - CNBC Interview
Stocks May Fall Another 20% (view this excellent interview here)
May 22 (Sunday) – On Friday stocks slipped another hundred points to breach the DOW 10000 level before reversing and benefitting from a strong upward push in the final 30 minutes. The extreme oversold condition along with short covering tied to the possibility for a more cohesive response to problems in the Euro zone inspired the turnaround. GOLD was not privy to the intra-day reversal and declined $6 to $1178. OIL traded down close to the $70 level. Another problem which has helped to undermine the stock market is the sense that economic improvement is now flailing. Some of the most recent economic reports have not been encouraging. The rise in Unemployment Claims and decline in Building Permits are not good signs. Meanwhile both the Empire State Manufacturing Index and Consumer Sentiment both fell in their latest readings. Toss in the fact that the Leading Economic Indicators ended its string of gains and we have a slate of evidence that says robust economic growth is not in forward view. With China’s equity markets already down more than 20%, the Euro in a state of freefall and faltering signs of recovery in the U.S., what is to really drive confidence and equity prices higher? FANNIE, FREDDIE & FRANKIE / watch this clip / The financial reform bill (FINREG) is receiving much criticism for not tackling Fannie Mae and Freddie Mac which were keys to the housing bubble and market meltdown. The Democrats spin is that these are too complicated to deal with. But the truth is that any in-depth public debate would peel back the onion on who was really responsible for promoting aggressive home lending policies and catalyzing the housing bubble which led to the worldwide crisis. Such debate would be bad news for the Democratic Party whose policies fostered the housing bubble. The most ironic part of this is that two of the primary culprits and central players in the housing bubble, Sen. Chris Dodd (CT) and Rep. Barney Frank (MA) are the culprits who are now parading in front of the cameras portraying themselves as coming to the rescue like Supermen! On CNBC, anchor Joe Kernen found a 2005 clip of Barney Frank, one of the key promoters and defenders of Fannie Mae and their promotion of aggressive lending to folks who could not afford homes. While the stock market is more than entitled to an oversold bounce, it is now all but certain that the 2010 high-water mark for stocks has been planted. The only economic report for Monday is Existing Home Sales, but stocks are largely being driven now by technical factors. I would expect a few days of rally to occur but from a technical standpoint the larger trend has turned downward. CHART TO ANALYZE - (No Chart Today) –.
TODAY’S REQUIRED READING – How Printing Money Will Impact Markets / by Bill Fleckenstein “What the world is witnessing is the continuing epic battle between the printing press and excessive debt held by governments at the federal, state and local levels, as well as too much leverage on the part of the world's financial institutions.” Now, A Bear Market Could Easily Evolve
“The conditions were ripe for that collapse to happen because the market has been boosted by money printing and quantitative trading. Thus it was a market underpinned by balsawood as opposed to girders of steel.”
THERE WILL NO BLOG on MONDAY-TUESDAY-WEDNESDAY
NEXT BLOG UPDATE is Thursday Evening
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Reject the Progressive / Liberal Agenda. Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check. / The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED!
Next Blog Update ➜ Thursday Evening – You May Email Me at
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2010-5-20 (Thursday Evening Update) MAY MARKET MANIA INDUSTRIALS SLAMMED BY 3.6% LOSING 376 POINTS TO 10068
Peter Eliades (Stockmarket Cycles) - CNBC Interview
Economic Outlook (view this excellent interview here)
May 20 (Thursday) – The best way to describe the recent stock market action is that of one of those giant roller coasters. The market was cranking up slowly, one hitch at a time each day until the ride got to the very top… and then it was…. weeeeeeeeeeeeeeeee down the big slide. Today’s market was hammered with a 376 point (3.6%) thrashing of the DOW INDUSTRIALS. For people to say they didn’t see this coming was to be lured into a trance of optimism. We spent week after week in this blog featuring technical charts that were building topping patterns and describing loss of internal momentum particularly with respect to the negatively skewed volume patterns. We also highlighted excesses in Bullish market sentiment in a host of market measures and described how these were foreshadowing a very important downturn in stocks. The decline is well underway and our primary downside target remains 9300 in the DOW. The NYSE Advance/Decline Ratio was a whopping 7-to-1 negative last Friday, and today extended to a negative 10-to-1 ratio. Sometimes that extreme ratio can be viewed as panic levels. When folks are looking for a bid to sell something they go to where there has been relative strength and thus the precious metals have even buckled under the selling. GOLD dropped over $30 yesterday and fell another $8 an ounce today to $1184. It did not help that weekly Jobless Claims rose this week. Even though a technical bounce in stocks will come soon, we remain Bearish on stocks. Here’s an interesting market perspective from technical analyst Phil Roth of Miller Tabak. Unfortunately, the Obama administration has not focused on incentivizing business, which should be priority #1 in America today. Instead he saddles companies with the costs of a new healthcare program, threaten to increase energy costs via an onerous Cap&Fraud plan and is backing a financial regulation bill that is going to constrain capital flows and put a further clamp on economic activity. If we didn’t know otherwise and arrive in the United States from planet Ziota, we’d think that those running the country today actually want to see the economy collapse as there is no sensible reason for the policy initiatives. This has been a very, very, very expensive lesson for Americans who were lured by the message of ‘hope and change’ by a progressive charlatan. Very scary. Very very scary. Perhaps Americans are waking up. We’ll find out in November. CHART TO ANALYZE - (No Chart Today) –.
TODAY’S REQUIRED READING – Moral Hazards of Demonizing Wealth Creators / by Thomas Sowell “One of the many shallow statements that sound good-- if you don't stop and think about it-- is that "at some point, you have made enough money.” “Enough Money”
“But that is wholly different from having politicians make such decisions for other people. Politicians who take on that role stifle economic progress and drain away other people's money, in order to hand out goodies that will help get themselves re-elected. Some people call that "social justice," even when it is anti-social politics.”
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Reject the Progressive / Liberal Agenda. Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check. / The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED! Next Blog Update ➜ Sunday Evening – You May Email Me at
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2010-5-16 (Sunday Evening Update) MAY MARKET MANIA DOW INDUSTRIALS ACCELERATE FALL BY 162 POINTS TO 10620
Mohamed El-Erian (Pimco, Co-Ceo) - CNBC Interview
Economic Outlook (view this excellent interview here)
May 16 (Sunday) – Even though the stock market recorded a net gain for the week, sellers clearly dominated the Thu/Fri sessions. There are lingering concerns on several fronts including the weak underpinnings in Europe, the Bear market action in China and our own lackluster economic recovery. The thing that may be most alarming is the sudden increase in market volatility. For over a month we pointed out the red flag warnings of complacency has depicted by the recent multi-year lows in the Volatility Index (VIX) which suddenly exploded off those lows and now we’ve seen a transition to a frequency of triple-digit market moves covering both directions. The NYSE Advance/Decline Ratio was nearly 7-to-1 negative on Friday, a whopping number. With the market now quite oversold, a rally attempt is expected, however the technical charts suggest that the high for 2010 may already be in place. GOLD held up well during the broad selling spree and only lost $1 an ounce to $1232 (our target remains at $1305). The Empire State Manufacturing Survey will be released Monday. We remain Bearish on stocks. One of the more shocking stories (link to clip) last week was not a financial one but one that exposed the core of Liberal infection in our educational system. An art teacher assigned students to make a drawing. When she observed one 13-year old girl had drawn an American flag with the words ‘God Bless America’ within the stripes, the teacher said she was ‘offended’ by the picture. Yet this same teacher ‘praised’ another student who drew an image of President Obama. What? !!!! Folks, the indoctrination of our young people starts right in the school system. People who are offended by the American flag should not be teachers. In fact, they should not be in the United States of America. There are many choices of countries around the world to live in and some have the exact socialistic, totalitarian governments that Progressive & Liberal Democrats always dream of for America. American citizens must unify to get these un-American teachers out of our school system. This is just one reason why these Progressives/Liberals must be expunged from power in America in 2010. Those who don’t like the United States of America should immediately file to leave permanently. Sean Penn can lead the way out. CHART TO ANALYZE - (No Chart Today) –.
TODAY’S REQUIRED READING – Scrutinizing Failings of Liberal Welfare Statism / by Jay Ambrose “Hail Greece, the final denouement of the liberal project, the welfare state in all its subsidy-happy, business-stifling, nation-ruining glory and the direction in which the United States is headed just as fast as it can go. The evidence is not hard to find.” Will Liberals Learn From Greece?
“You've got to hack spending. Or, in other words, you have to do what the left chiefly dreads, drastically reduce the welfare state we already have, return this society to a greater resemblance of self-reliance, support instead of cripple businesses and keep in mind what happens if you don't: Greece”
THERE WILL NO BLOG on MONDAY / TUESDAY / WEDNESDAY
NEXT BLOG UPDATE is Thursday Evening
Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Reject the Progressive / Liberal Agenda. Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check. / Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOYYYED! Next Blog Update ➜ Thursday Evening – You May Email Me at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
2010-5-13 (Thursday Evening Update) MAY MARKET MANIA DOW INDUSTRIALS IN LATE SELLOFF SLIDE 113 POINTS TO 10782
Jordan Kotick (Barclays Capital) - CNBC Interview
Stock Market Technicals (view this excellent interview here)
May 13 (Thursday) – There has been a change in market composure as volatility is clearly rising. Last Sunday the IMF, Europe, the US and others patched together a massive $1 trillion bailout for Greece and others in the EU that are teetering on the precipice of financial peril. On that news the stock market experienced a stellar rebound after the chaos that triggered a 1000 point intra-day decline. Now after a few days of rally the stock market turned lower today in a broadly based sell-off with losers outnumbering winners on the NYSE by a 2/1 ratio. Even GOLD could not sustain its incredible upward movement and reversed to a small loss of $4 to $1233… our target remains at $1305. Friday is a huge one for economic reports including Retail Sales, Industrial Production, Consumer Sentiment & Business Inventories. Folks wanted to believe that the huge bailout meant that the markets dodged a bullet or at least delayed the day of reckoning. However, with no clear path toward solution on the cost and entitlement side of things, there is still smoke in the air. We continue to forecast a decline in stock prices with a minimum downside target of 9300. We heard one respected analyst forecast the DOW INDUSTRIALS to collapse to 5000 later this year! That would be quite breathtaking… but don’t you think it can’t happen, it can. Bids have been very light on the rally and disappear quickly when selling is triggered by news events. And let’s not overlook that China’s stock market is already off 20+%, in official Bear Market territory… and they are suppose to be the world’s growth engine! This week the Progressive Democrats introduced their latest scam on the American public, their Cap&Trade Energy Bill, which they have now renamed American Power Act. Since the public has become aware that Cap&Trade is the Enron scam multiplied by 10,000, this will be the biggest fraud ever perpetrated on American citizens, over 1000 times bigger than the Madoff Ponzi scheme. Any Democrat Liberal & Progressive you are aware of who supports this con should be marked as a criminal. Only criminals support this legislation, criminals starting with Senators Kerry, Boxer and the entire Progressive/Eco-Radical Global Warming crowd. CHART TO ANALYZE - (Four Bad Bears) – Check out the current overlays on these Bear Market historical charts (courtesy dshort.com). The big question is will the financial crisis more closely parallel the market behavior of the 1973 Oil Crisis and sustain further recovery or are the good times about to end with a new wave down looking us in the eye? The great Crash of ’29 and the 2000 Tech Bubble markets both turned lower after their big initial recovery phases.
TODAY’S REQUIRED READING – Comparing the Similar Path of America and Greece / by Bill Frezza: “Democracy is broken. You can't mix Freedom and Free Lunch. One or the other has got to go.” Are the Greek Riots a Picture of Our Future?
“Wake up America! How many million unionists are we expected to carry on our public payrolls? How long can we keep government employees on defined-benefit pension plans while the rest of us scramble to fund our 401(k)s ? How many more people are we going to drop from the income tax rolls as we lean on a smaller and smaller slice of citizens to carry an ever greater percentage of the load, leaving the rest free to vote for tax increases? How large a swath of our population can we pretend to keep supplied with newly manufactured economic rights like free healthcare as Social Security and Medicare careen toward insolvency?” Keep America STRONG! – Speak out against government corruption! – Keep LIBERTY and FREEDOM in your sights! CAP& TRADE is a SCAM / It is ENRON times 1000 / promoted by the Progressive Democrats / Don’t let CAP & TRADE Become Law / Expose the Fraud! 2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
American’s MUST & WILL VOTE OUT ALL Progressives / Save the Republic! / Surround the White House with opposition majorities in BOTH HOUSES
Reject the Progressive / Liberal Agenda. Reject Obama,Pelosi,Reid,Schumer,Soros,Podesta,Stern,Boxer,Frank,Waters,Weiner,Nadler,Wasserman-Schulz. Reject SEIU, MOVE-ON-CON-JOB, ACORN, TIDES FOUNDATION. Reject Obamacare. Reject Fake-Science Global Warming & Cap&Fraud. Reject Card-Check. / The Progressive Marxist Agenda must be derailed & DEEEEE-STRROOOOYYYED! Next Blog Update ➜ Sunday Evening – You May Email Me at
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2010-5-9 (Sunday Evening Update) MAY MARKET MANIA DOW INDUSTRIALS END WEEK SLIDING ANOTHER 139 POINTS TO 10380
Marc Faber (The Gloom, Boom & Doom Report) - CNBC Interview
The Gathering Gloom (view this excellent interview here)
May 9 (Sunday) – The DOW INDUSTRIALS are now nearly 900 points below the peak of 11258 achieved at the recent recovery high on April 26. In other words 26 weeks (half a year!) of hard fought equity gains were wiped out in just 9 trading days. While it is true that the NYSE apparently inadvertently triggered Thursday’s rapid intra-day collapse when they attempted to stabilize markets by halting a few stocks to match up buyers & sellers, it is noteworthy that stocks continued down again on Friday even though this Employment Situation Report actually showed a much hoped for increase in job creation. With the sudden reversal in equity prices, GOLD has emerged as the asset of choice now priced at $1209. Our strategy for months has been to reduce exposure to equities, to establish short/hedge positions via ETF vehicles, while maintaining up to 15% of portfolios in GOLD. The minimum upside target is $1305. How many times did we illustrate market complacency by featuring how the Volatility Index (VIX), had transversed to multi-year lows? The index bottomed at 15.23 and closed Friday a whopping 169% higher at 40.95. I also presented recent charts showing the very Bearish Rising Wedge patterns which are high probability chart formations that most often result in treacherous market declines. Then there was the endless string of volume data revealing lighter activity on market rally days while always increasing on the few days the stock market headed lower over the past 6 months. We pointed out this was a sign that bids in the market were thin and that when something developed to agitate investors and trigger widespread selling, that prices would fall fast. These seemed like crazy things to talk about when stocks were stubbornly inching higher nearly every single day, inspiring more confidence from investors and create more optimistic outlooks by analysis and asset managers, with some exceptions. We continue expecting the DOW INDUSTRIALS to decline at minimum to the 9300 level this year. The debt problems in the Eurozone and the gathering violence in the streets of Greece are a foreboding of things to come. Many other countries (Italy, Portugal, Spain) are also in dire shape. The nanny state example of high taxes and cradle-to-grave statism is a failing model. The IMF approved a $38 bailout of Greece this weekend but it is unclear if the people will have the discipline to stick to required reforms and also if their economy will be strong enough to meet certain goals. Meanwhile, here in the United States, President Obama and his Progressive & Liberal allies keep pushing forward with similar policies that led to the current mess across the ocean. Obamacare is another $1.6 trillion dollar anvil of costs that is pushing the national debt ratio beyond sustainable levels. When the axe falls and violence in the streets comes to America, it will NOT be the Tea-Party folks (champions of fiscal conservatism who’ve been warning about increasing financial burdens); rather it will be the Progressives, Liberals & Unions flooding the streets, the very people whose policies created these problems. Look at the dire circumstance in all of the most liberal states: California, New York, Illinois, New Jersey, Massachusetts & Michigan. These states have all been dominated by liberal policies, the Progressive politics of collectivism and sweet heart union deals that make no economic sense. Here’s a concise explanation with economist Nouriel Roubini (interview) on how the European crisis unfolded and provides a glimpse of the road America is heading down under current leadership. CHART TO ANALYZE - (Mega Bear Markets Compared) – So many times we’ve presented this chart (courtesy dshort.com) showing how the major Bear Markets behaved in history. We’ve oft pointed out that if the traditional pattern holds true that stocks were getting close to a major reversal point where prices would begin to turn down again. Have we seen that inflection point last week? Only time will tell.
TODAY’S REQUIRED READING – Exposing the Real Higher Costs of Obamacare / by Michael Tanner: “Perhaps this is why nearly 56 percent of American voters now favor repealing the bill.” Obama’s Health Care Promises Already Busted
“And how many times did President Obama criticize the United States for having the highest health care spending in the world? Well, the government's chief actuary released his report on the bill recently, showing that the bill will actually increase health care spending by $311 billion over the next 10 years.”
THERE WILL NO BLOG on MONDAY-TUESDAY-WEDNESDAY
NEXT BLOG UPDATE is Thursday Evening
2010 Election Mandate: LEAVE NO PROGRESSIVE BEHIND IN OFFICE
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