Free Reports

Weekly and or Pre-Opening - Main report excerpted. on or before 11:00 AM

Archived reports - titles/dates full reports available upon your request to see how we commented in advance of the market action:

08.31.10 - PRE - UNDERWHELMING – DIVISIVE OR A PERFECT NIRVANA ENVIRONMENT

08.30.10 - PRE - SPLASH OF REALITY – MUNDANE

08.27.10 - PRE - OMEN -ANIMAL HOUSE & THE RALLY WAS WORTHLESS

08.26.10 - PRE OPENING - WOEFULLY OUT OF TOUCH – THE BRAIN TRUST

08.24.10 - PRE - HOW’S THE M&A SYNERGY WORKING OUT?

08.23.10 - PRE - FLOGGING A DEAD HORSE - $1.1 Trillion Has Now Vanished

08.20.10 - PRE - HOW'S YOUR M&A? - DISABUSED

08.19.10 - PRE - YOU WANT A CATALYST? YOU CAN’T HANDLE A CATALYST!

08.17.10 - PRE - BRAIN DRAIN TOO MUCH PANDERING TALK & GREAT GRAIN ROBBERY (PART 1)

08.16.10 - PRE - A TIP OF THE HAT - PEAK INTEREST

08.13.10 - PRE - WE NAILED IT WHILE OTHERS BLATHER ABOUT NOTHING – Blue Pill

08.12.10 - PRE - IT’S THE END OF MANKIND AS WE KNOW IT (borrowed from REM) -LOCK STEP VILIFICATION

08.11.10 - PRE - FAMOUS LAST WORDS OR CONVENIENT UNTRUTH

08.09.10 - PRE - STEAMING PILE OF GARBAGE or Thank God for HP - Posted 8/11/10 - 5:00 AM

08.06.10 - PRE - PAUL THE OCTOPUS SAYS…

08.05.10 - PRE - RIPE FOR A RIP-OFF

08.04.10 - PRE - THE EVENT – SHOCKING DEVELOP

08.03.10 - PRE - MIND ALTERING NONSENSE

08.02.10 - PRE - PAINT (PAIN) BY THE NUMBERS

07.31.10 - PRE - NEW DAILY FINDING's - DEFLATIONARY SPIRAL & ABUSE OF POWER

07.28.10 - PRE - SEEN THIS MOVIE BEFORE – UP THE DOWN STAIRCASE

07.27.10 - PRE - FUDGING THE TRUTH AND FACTS AGAIN – INSIDE

07.23.10 - PRE - DEFLATION IS NOT THE ONLY CONTRIBUTING FACTOR - IT’S A COP OUT

07.22.10 -PRE - MARKETS ARE KNOWN PROVOCATEURS

07.21.10 - PRE - TRUST NO ONE BUT YOUR OWN EYES

07.20.10 - PRE - EPIC ASSAULT ON THE SENSES

07.19.10 - PRE - DR. JEKEYLL MR. HYDE HIDE MARKET

07.15.10 - PRE - FROM BEARISH BULLS TO BULLISH BEARS – LIFE AND TIMES

07.14.10 - PRE - HYPOCRITICAL MARKETS OR HORMONAL IMBALANCE

07.13.10 - PRE - PUMP UP THE BELLOWS – FALSE MERRIMENT V. CHARTS AND INFORMED EYES

07.08.10 - PRE - BEAR MARKET RECALL or TRAVERSING THINGS AGAIN

07.09.10 - PRE - MIDYEAR AND THE FARCICAL MESSAGE REMAINS - TOUCHSTONE

07.07.10 - PRE - TOO HOT - GIBBERISH - QUANDARY

0.702.10 - PRE - THE NON-STANDARD GOLD STANDARD OR BEHAVIOR MODIFICATION NEEDED

07.01.10 - PRE - INDIGNATION TO INDIGESTION

06.29.10 - PRE - FEAR - NO GUILTY PLEASURE IF LONG - ONLY CYCLES GOVERN

06.28.10 - PRE - BE THERE MEANS TO HAVE ARRIVED – IMPORTANT DISTINCTIONS

06.25.10 - PRE - NOT SO GOLDEN YEARS - WAY OFF TRACK

06.24.10 - PRE - MIND-NUMBING - SATIATED

06.23.10 - PRE - WIGGLE ROOM… idiotic blathering

06.22.10 - PRE - MONUMENTALLY UNEVENTFUL ALBEIT SUCCESSFUL - ODE TO KNOW IT ALLS

06.21.10 - PRE - SUBTITLES - NOT A FORCE FOR GOOD AND CONDOLENCES

06.17.10 - PRE - A MORE NUANCE APPROACH - EPIPHANY- LIVING OUTSIDE THE STATUST QUO

06.18.10 - PRE - ISN’T JUST BAD P.R. FOR BP

06.16.10 - PRE - NAME NAMES SAY SOMETHING TIMELY ALREADY BLACK BOX REVEALED

06.15.10 - PRE - DENIAL - TO BE OR NOT TO BE A RALLY – WEDGE FORMATION

06.11.10 - PRE - WHETHER TO SHORT OR BUY THE ILLUSION - BEING A APOLOGISTS

06.10.10 - PRE - SITUATIONAL AWARENESS OR TOTAL DISCONNECT - BOOMERANG

06.09.10 - PRE - USURPED – PUSHING ON THE PROVERBIAL STRING

06.04.10 - PRE - ECONOMIC SAGA AND LACK OF TRUE TRENDS

06.03.10 - PRE - NO ONE’S PERFECT ALL THE TIME - WHEN THE STORY IS – IRRELEVANT

06.02.10 - PRE - LACK OF QUALITY CONTROL –PIPERS - OVERARCHING ARCH

06.01.10 - PRE - COMMON DATA - IN PERPETUITY

05.28.10 - PRE - STICK AND STAY OR HUFF AND PUFF - DEPTHS OF PESSIMISM

05.27.10 - PRE - DON'T ASK, CAN'T TELL

05.26.10 - PRE - CATS AND DOGS –INTRADAY CHARTING

05.25.10 - PRE - AS DAY FOLLOWS NIGHT – SPECIFIC ORDERS RE GOLD

05.24.10 - PRE (1) - NEW MANTRA: 'CASH AT ANY COST’ …

05.21.10 - PRE - THE GIFT THAT KEEPS ON GIVING (FOR US) - THE THINKER

05.18.10 - PRE - HOPE’S NOT A STRATEGY …AND A TOURNIQUET WON’T HELP

05.19.10 - PRE - LACK OF OXYGEN OR BREATHTAKING ...

05.13.10 - PRE - ANATHEMA OR ALICE IN WONDERLAND (2)

05.12.10 - PRE - ANATHEMA OR ALICE IN WONDERLAND (1)

05.11.10 - PRE - BREAKPOINT, CHAOS THEORY, LESSONS – SCHOOLS OUT

05.10.10 - SPECIAL REPORT - DITHERING - SIGN FROM GOD (part 1 of 2)

05.07.10 - PRE - SOLE SURVIVOR OR THE SKY HAS FALLEN – DRUDGE SAYS SO…

05.05.10 - PRE - FROM RISK APPETITE TO ANOREXIA7

05.04.10 - PRE - THE INVERSE INVESTOR from Lemmings to Sheeple – Diamond formation

05.04.10 - PRE - MULTIPLE CHOICES – ALL BAD CHOICES – ROLLER COAST

04.30.10 - PRE- THE WEAKEST LINK and wise words or when there is no one left to trust –

04.29.10 - PRE - HONEST BROKER WHAT A JOKE

04.28.10 - PRE - WHAT A WEEK ONLY HALF OVER here comes austerity

04.27.10 - PRE - TOTAL DISCONNECT – IN PRAISE FOR THE LITTLE GUY and EF HUTTON

04.26.10 - PRE- SO DEEPLY IN A MINEFIELD - ETHIC & MORALITY – FREAK PARADE

04.23.10 - PRE - NOT FOR FAINT OF HEART

04.21.10 - PRE - STONES ANTHOLOGY - FOLLOW THE BOUNCING GURU

04.20.10 - PRE - SWIMMING WITH THE SHARKS

Only Special Alert Reports (titles) remain listed but any report can be requested to be compared against the market session of that day.

04.18.10 - SPECIAL SUNDAY NIGHT UPDATE - HOW MANY GROUND ZEROS ARE THERE?

09.07.09 - SPECIAL NOTICE - IT’S BEEN FIVE MONTHS FROM OUR LAST ‘SPECIAL NOTICE’ TIME TO REVERSE

06.02.09 - SPECIAL MUTUAL FUND ALERT

04.30.09 - SPECIAL NOTICE - MARKETS REACHED OUR FIRST GOAL TO SELL 27% GAINS

03.26.09 - SPECIAL ALERT - POTENTIAL MELT UP, BUYING STAMPEDE - "CLIMACTIC" - "PARABOLIC."

03.01.09 - SUNDAY NIGHT - SPECIAL UPDATE - SEMANTICS (A PRECURSOR TO WORDS MATTER)

01.18.09 - SPECIAL ALERT - OCO - ONE CANCELS OTHER - GOOD V. EVIL

12.14.08 - SPECIAL ALERT - TRUTH IS NOT OUT THERE

12.12.08 - SPECIAL UPDATE - IT WAS ALL A BAD DREAM - WELCOME BACK TO YOUR NIGHTMARE

10.12.08 - SPECIAL ALERT - WINTER OF DISCONTENT (#1) - ANY RALLY WILL BE AT ODDS OF THE TRUTH

10.08.08 - SPECIAL REPORT - SAFETY OF DAMS - GOING TO BE LONG SESSION - CRAMER WANTED DEAD POSTER

09.18.08 - SPECIAL NOTICE - MISLEADING, HARBINGER ...WHISTLING PAST THE GRAVEYARD

09.17.08 - SPECIAL NOTICE - CAUTION - CALLING FOR MARKET MELT-UP

09.17.08 - SPECIAL REPORT - A PROFOUND MOMENT, WE ARE QUALIFIED CALLING A BOTTOM NONE OF THEM EVER SAW THE TOP, CANARD

09.15.08 - ALL REPORTS DONE UNDER SPECIAL UPDATES NUMBERING #1 - 5 - TECTONIC -ABSENCE OF DUE DILIGENCE - SEEKING FAIR VALUE

09.07.08 - SPECIAL SUNDAY NIGHT ALERT - YOU HAVE LESS THAN TWO WEEKS TO HEED THE STORM WARNING

08.14.08 - MARKET REPORT - STRONG ADMONITION ADVISORY

06.22.08 - SPECIAL NOTICE - PEACE OF MIND – TURNING POINT APPROACHING

04.14.08 - SPECIAL ALERT - DIVERSIFICATION V. TRADING

03.17.08 - SPECIAL REPORT - BIRD FLU PANDEMIC- NOT QUITE -SLIPPERY DIVIDENDS

02.25.08 - SPECIAL ALERT - FROM ALERT TO NOW PANIC – CRISIS DU JOUR AND BEYOND

01.21.08 - SPECIAL REPORT - END OF DOGMA: TIME FOR SOLUTIONS NOT THEORY CHATTER OR HAPPY TALK

12.27.07 - SPECIAL REPORT - GUIDING LIGHT - BREAKING NEWS & ADDENDUM

11.28.07 - SPECIAL REPORT - YUP, THOSE "I THINKERS" ARE THUNK OUT ABOUT NOW

11.27.07 - SPECIAL MIDDAY - PROVING SOME OUR POINTS OF FACTS – WORMHOLES AND TURKEYS

10.22.07 - SPECIAL ALERT - DOES AS WE DO, NOT AS THEY SAY

10.04.07 - SPECIAL REPORT - DISTRIBUTION OF INTELLIGENCE, WE INTERRUPT REGULARLY SCHEDULED PROGRAM

These limited postings in text form are some of the 40 reports produced weekly under Pre/Post, Midday, and Pre Close. Our desire is to work with YOUR holdings to return you back to financial health. To request 'pristine' copy of any report of any day ... please call 201 - 488 - 2314

Intraday excerpted update posting - 9:45 -12:00 - 3:00 PM

LIVE DAILY REPORTS:

2009 Long Portfolio Value

Gain/Loss Since Purchase Gain/Loss Today DOW YTD

... end of day close

61,445.495,611.49 +10.05%

29.09 0.05% -82.35 -1.04% -10.47%

Since February '09 we’ve been posting our running performance totals based on Friday closes. Among reports 12.19.08 -PRETENCE OF KNOWLEDGE -THE PARADOX OF THIEF through our last sale 08.26.09 - ON ICONS AND IRONY . Our results speak for us proudly. While 'mavens' are always backwards looking, they can only suggest how great the rally’s been off March lows but that doesn't’ translate into results for their clients .... we set forth our proof and record:

2009 Model Portfolio end of week ValueGain/Loss since purchase YTD Gain/Loss Dow YTD

2/27/09 69,685.00 -1,346.00 1.89% -19.52%

* theoretical sale of 1/3 4/10/09 122,048.01 26,277.01 27.44% -07.90%

* theoretical sale of 1/3 6/06/09 159,444.00 58,373.00 57.56% -0.15%

* theoretical final sale 8/14/09 186,367.7482,596.74 79.33% 6.21%

These results produced via 100 shares @ stock selection from proper buy/hold strategy copy of list is available

2009 - Long Portfolio Value end of year: Gain/Loss [Since Purchase]: 203,660.98 +99,889.98 +95.94%

DOW JONES INDU 9820.20 +11.89%

NYSE COMPOSITE 7016.92 +21.88%

NASDAQ 100 1725.24 +42.39%

RUSSELL 2000 617.88 +23.71%

S&P 500 INDEX 1068.30 +18.27%

VALUE LINE INDEX 2186.30 +55.63%

AMEX COMPOSITE 1801.19 +28.88%

WE DON’T NEED TO TEAR EXPERTS DOWN TO BUILD OURSELVES UP, they do a damn good job on their own. Their pathetic track record speaks for itself, as does our axiom …with friends like these folks who needs enemies. CXO Advisory” '07 says performance of some “experts” is “reasonably good” about 60% but on average, self-professed "gurus” are only right 48.6% of the time - that means even worse (than coin flipping!) http://www.cxoadvisory.com/gurus/#snapshot

(201) 488-2314 avail 24/6 INFO@INVESTORSALVATION.COM

Our writing tone is much like Abelson of Barron's. We may be irreverent, but our content is never irrelevant

DOGMA HAS ENDED: It stands to reason if firms can't do for themselves - they definitely can't do for clients. The best approach to self-professed TV messiahs is to close your ears, open your eyes, turn off the idiot tube and know free advice is very costly. Our reputation is an open record, refuting media's contention that "no one can time the markets.”

Daily we post live updates revealing our forecast, timing, and trading abilities in advance of markets. From proper due diligence each is time/date stamped ahead of markets verified against time/sales. Alleged experts who never saw tops, nor knew when to take profits, will never see correct bottoms to use proceeds to buy at lows. They never post their track record and can only commiserate about a prior day's action where we locked in profits and set up for the next move. Their advise to keep buying dips (dollar cost averaging) that's a flawed strategy. Cheap always gets cheaper. To view the most over hyped stocks , the (bluest of blue chips now penny stocks) that lead to Creative Destruction, (See) MYTHS Page

* IF JIM IS TELLING THE TRUTH... thanks to Don Harold confirming .. friends like Cramer who needs enemies ... http://www.youtube.com/watch?v=vtrke0NfbcQ

There is no wonder why investors trust and confidence is crushed along with $30 trillion in global wealth.Our production of 40 reports per week is a service to professional traders meant to pique your interest illustrating what can happen from proper advance planning. Without a defined strategy, one cannot decide the correct investment vehicle nor know where add-ons should be done to cost average properly, lower breakeven, and when best to take profits.

A partially informed investor is about as effective as a partially informed surgeon; they will hurt themselves and those around them. We wrote 12/2007 WR- Beware of the Ides of October …that all capital markets were on the brink of collapse since then the bloodbath obliterated $32 trillion in global wealth and the elimination 70K brokers, yet CNBC serves no utility was bullish all the way down and *Analysts' Accuracy in forecasting is the worse in 17 Years. (Bloomberg)

Proof our technically forward-seeing prowess comes from inter-market relationships. We engineer what is best for clients in opposition to headlines, thus taking the guesswork out of investing. We are among the very few who avail themselves in 'live time' for clients to speak with us directly. Our interest is not selling subscriptions but to assist in reinstalling confidence by reviewing your investments. Segregated profits,uses the market's money NOT new funds. This is needed to grow accounts, not fuel the market. We know what will happen; not regurgitating what has happened See- WEEKLY CHART Page

At your request, we'd be pleased to forward any report in its entirety, validating that being proactive is necessary to preserve capital. Moreover, not every dip is a buying opportunity. As usual, technical's lead and eventually in the fullness of time, fundamentals react albeit too late the THEORY OF DIMINISHING RETURNS (See) CONTACT Page

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Subject: Midday - Let the good times roll - voodoo expectations 
Date: 9/3/2010 12::59 P.M 
Posted 1:20 PM

So now everything is out, the FED acted, earnings are behind us, the M&A new tend chatter has grown silent, in fact ever since POT news little else has taken root aside from small Canadian miners. So the jobs report did beat the street and all those wise men not so wise, they missed this too. Yet the rate moved from 9.5 to 9.6 and the WH still thinks this is headed in the right direction. At least for China it does.

Of course lurking out ahead is the mid terms and for sure no one is apologizing for all that noise and clatter either, its only grown louder and steadier every since the presidential elections ended two years ago.

So speculation is ongoing as to who will win, who's in front, etc., but yet none the candidates dare touch the unspoken number regarding the real under employed or the U number. It also has moved to 16.8% today and we know its closer to 23% depression levels if you start adding in the youth rate of only blacks out of work.

But the short-term trendline, a silver lining, comes from those receiving checks has moved lower. Those in the 26-week slot while not in need of full length of time, some now only require 43% vs 45% before reapplying for extension. That's an easing of sorts a benefit that some temp workers are finding job sooner. That also maybe why the Treasuries dropped today.

Nonetheless the loss of 8 million out of the work over the last many years means we only need creating about 250,000 each month to move back to the normal trendline. But if the rate remains at the lower side say only 100,000 jobs created each month then it will take that much longer for full employment or say another decade or so but hey, who counting since we're a far cry from that lower estimate anyway.

MARKETS: Somewhat surprisingly the index are still holding beyond our 11:30 fade time zone, we would have expected softness to arrive before now since floor traders in Chicago are all but gone, they're done their trading in bond once the ISM number was reported.

We have some interesting messages to be email behind this report but for the balance of the day we are still expecting a close just under the 1100 handle and even as deep as 1093 won't give true direction for early next week that deals with futures roll that will add some confusion since prices will be higher on the front months and media more of a big deal than its worth.

Our bond short trading for non-futures accounts has the TBT working out nicely; there's a gap about 34 and resist starts above that as report.  We'll have to watch and take our cue from the bond market if it only stops at 131 - 129 already down from 136 or if they work lower back to the mid range say 122 area.

The TBT should fund support at the 32.25 and moves above 35.50 means rates will move higher bond prices lower or just, as the experts are sure everyone needs to own some. That only took them 10 years to discover once stocks failed so miserable as a long-term investment crap.

If it happens that bonds actually crack the 120 and print even 119 that will not bode well for stocks and the inflation chatter will be back; either eventually they both should link up but for now it would be a knee jerk overreaction if rates rise and the INX will takeout the 1040 where we missed covering our last shorts expecting 1035 to arrive.

Well, one time out of 10 isn't the worse record and makes us human.

In the mean time everyone's back in the bull camp surrendering their Monday fear mongers on voodoo expectation of the OMEN CURSE. Yet (we bet) by next week when this storm passes they'll be using it as some excuse why the 'engine of growth' stalled and that no one did any Labor Day shopping.

Safe weekend to all watch for next emails and their messages then enjoy the holidays 
---------------------------------------
Subject:  Post opening #2 WHAT'S THE GOAL or PERCEPTION less bad means what less worse but not MO better 
Date: 9/3/2010 9:44:57 A.M. 
Posted 10:05 AM

So lets try to understand things, tax payers where blackmailed to ante up $800 billion to save the banking and financial system, those institutions were in fact saved, now there is no more too big to fail talk and they are the ones not lending and coking off any growth recovery in the name sake of preserving shareholder value.

While politicians banter about who's really responsible sending tens -- hundreds of millions to get elected and more money been spent on TV advertisement than spending out of pocket on plane tickets to get back to DC while on another vacation than extend employment. The republicans when in office wasted positive budget surpluses and brought the country to its knees are no better than democrat's imposition on business.

Between them both on the receiving end of gross contributions from big business agree that it's the small guy the Mom and pop start ups that will save the country by private any hiring. Let’s see, for decades congress stood by and aided in the whole selling and cheered to off shoring of business brick by brick. Where workers inside the plants actually had as their last job orders to train their overseas counter parties.

So in short, the "little people" who are burden to pay higher taxes, fleeced out of their retirement accounts and dreams from under funded 401 and more. Now they are expected to be in celebrated mode because today's numbers are less bad.

Even with the rate climbing corporations that fire in the 10's of thousands want still more tax more of that corporate welfare they receive. At least not to end bush's tax cuts for the wealthy few and as leaders they haven't hired into their work force in decades.

Even with the markets recovering few firms have rehire brokers; sure some "investment bankers" with books on the hopes there are deals to be made by swapping a client from one firm for another.

MARKETS: All other comments stand from the opening report 090310 - PRE-POST - HOW WE CELEBRATE LABOR DAY A STORY and we were right on our insights that the experts did bet the "under" today of the job numbers. Also we finds ourselves wrong in hindsight for not taking fast profits for the 10th time this year when the INX made a lower pass under 1040.

Nonetheless we are still short from above the markets even with the early rally that should start to phase itself out after 11:30 AM and that sideline money will stay pat based on a 'risk case' not a 'base case.' There are still plenty of headwinds still very much in place out there.

To which this short squeeze underway will create the air pockets under the markets and all this will do is change the timing of the QE2 and dble dip scenario. The FED will later (after this correction in bonds) with a move back to 130 - 129, will still be forced to buy long term debt trying to stabilize markets economy.

INDEX: It would appear our suggestion for a slightly higher Friday close this week over last will stand but our wants for a 4th confirmation sell sigma at 1051 is obviously out of the cards today.

We also said near term cycles were placid and markets could trade sideways into next week then set themselves up for the 12th once there are enough call buyers on board and a hard reversal into Quad Witch that plays into the next set of cycle turn dates ending any retrograde action by then.

A close today at 1093 keeps things not only neutral but a 'coin toss' as to how Sunday night opens no less Tuesday's session and the mid terms are but one 'head wind.' Close your ears and pass on any chatter about 'tail wind' and a recovery, as said earlier about savings accounts and experts opinion that money will be spent when back to school data already stinks.

For that matter in the other arenas where experts have come over to the dark side recommending bonds finally, our short and long inverse ETF on treasures are working find thank you.

As they bonds are now headed to our 129 price. For gold, well any visions of $1300 per ounce will have to wait a bit longer hoping the job numbers will also mean deflation is ending and inflation for unit and hourly wages will put more pressure on inflation.

BUT just wait for the ISM to be reported we could get a nasty reaction and reversing all the happy talk and our orders to let the banks come to us to reshort is under way and at near targets,

Will update before noon report but index action should start to fade from here into 11:30 AM all positions will be held as is

Weekly Chart page is updated -

09.01.10 – PRE OPENING - THE RUSTING OF AMERICA FINGERS CROSSED ON ANY HOPE

Since so many talking heads have assumed the role of speaking for the American people and missing the mark, perchance what we have to say is a little more relevant.

Everyone is weary – both inside and out of the markets, and while others highlight their remarks using the term “I think,” we can say emphatically that so-called experts and politicians lack insights or empathy and do not connect with anyone.

The nerve of any government officials who’s receiving inflated salaries and perks on the back of taxpayers and acknowledge that Americans are the hardest working people on the planet, barely taking vacations and putting in nearly 60 hours per work. Since these clowns have jettisoned the plants and facilities.

They are unable to appreciate that there is nowhere for workers to go and yet have not arrived at the point that without money, all those cheap imports can’t be bought as that concept is too complicated for them to grasp. Worse is refusing to repay workers with extended unemployment checks now calling everyone lazy? (See below) - What Makes America Great: Layoffs!

Everything has consequences and there are direct correlations to causality. Without being too esoteric about the current economic state, where some are finally understanding what “deflation” feels like, know well when a retail store is running Christmas sales in July or offering customers the “buy one get two free” or when furniture outlets are willing to forego interest payments until 2014, that means they can’t even GIVE their items away.

Before getting into the heart of this report, let us address today’s market that indicates (based on early futures) that another 100-point up opening is likely. We anticipated this yesterday and this is why under the Pre Close we wrote at length that there was no compelling reason for action on our part, as the markets are trapped in a consolidation/congestion zone and even suggested Monday that last week’s gap should be filled this week at 1070.

Obviously, the end of the month produced no artificial window dressing and August turned out to be the worst month in nearly 5 years and virtually extracted any of the July gains. This almost silenced the experts whom you will have noticed are no longer drawing comparisons even to last year’s rally off the March ’09 lows because markets are virtually flat on the year even after some 1500 INDU point swings have occurred.

Again, the early pop effectively means nothing shy of squeezing any shorts that came in at yesterday’s lows or paining longs who decided to liquidate. If this morning's surge is due to new monthly contributions to IRA, it will not last nor any words from the president about turning the page now that a trillion dollar war has ended adding to the deficit from borrow funds; and since he’s already made sure bankers and Wall Street were made whole over a year ago as American workers have languished and won't rekindle hope.

Under the CHART SECTION, we will show this consolidation phase that has accomplished nothing other than an immense amount of wasted dollars while wannabe traders have churned and burned themselves. We did suggest that heading into this last holiday weekend, there is some evidence that the markets close higher. But from today’s premature rally, we will now suggest that Friday will be a lower close than today’s highs, albeit settling out slightly above last Friday’s close. *

This report needs no hand holding and in cryptic ways we will introduce articles that also move along with previous proof such as yesterday’s piece on a 50% increase of homeless in NYC alone.  All this is the continuing effect of lousy foreign trade polices whereby wholesaling our brain trust and technology, the rest of the world did not have to spend precious time or money inventing that which we gave over.

Dating back to the Clinton era under NAFTA then accelerated under Bush, the concept was to forfeit what we did best and independently so that the rest of the world could be lifted up supposedly benefiting emerging countries. Things didn’t work out to the certain extent our FOOLS on the Hill expected and now we are in the pocket of China ready to beg for the air we breath as every other nation is emerging from its own recession and we’re still paying the price.

So in short form having already reported how BRIC nations are enjoying legitimate GDP growth where we are shrinking, experts are still trying to con Americans to be pleased on lower expectation that are still barely positive for the moment. That’s the new normal or less worse as we rejoice on revised lower GDP is only 1.6%

AS AMERICA RUSTS:
(1). As US Auto Sales May Hit 28-Year Low as Discounts Flop, India's economy races 8.8%, Russian economy grows 4.0%... German unemployment rate 7.6%...  soon even Iraq will have a higher GDP than the US their oil production has doubled.

(2). Don't expect any restoration to get to the root cause of what contributed to the worse economic crisis dating back to the last Depression; nor wonder why investors confidence is gone, now its not just their money sidelined but the public gone for good.

* SEC says it lacked authority to charge Moody's SEC says it lacked authority to charge Moody's over high ratings for risky investments - AP Business Writer, Tuesday August 31, 2010, 7:23 pm EDT WASHINGTON (AP) -- The Securities and Exchange Commission has declined to seek fraud charges against Moody's Investors Services over its ratings of risky investments that led to the financial crisis.

But the SEC said it decided against seeking civil charges only because it determined it lacked authority to charge a foreign affiliate of Moody's. Instead, in a report on its investigation, the SEC warned all credit rating agencies that they could face charges if they mislead investors with deceptive ratings.

Investors rely on the statements these agencies make in their applications and reports to the SEC, Robert Khuzami, the SEC enforcement director, said in a statement. "It is crucial that (rating agencies) take steps to assure themselves of the accuracy of those statements and that they have in place sufficient internal controls over the procedures they use to determine credit ratings," he said.

The warning is the latest step by the SEC to address the conduct of major financial firms that contributed to the Wall Street meltdown. Goldman Sachs & Co. agreed in July to pay $550 million to settle civil fraud charges related to its sales of mortgage investments. And Citigroup Inc. agreed to pay $75 million to resolve charges it misled investors about billions of dollars in potential losses from subprime mortgages.

The financial overhaul law enacted in July calls for reducing the influence of the big three rating agencies -- Moody's, Standard & Poor's and Fitch Ratings. They were discredited in the financial crisis for giving high ratings to risky mortgage securities. The financial overhaul law also gave the SEC authority to pursue alleged fraud by foreign affiliates of U.S. rating agencies that could have a significant effect within the U.S.

The SEC accused Moody's of failing to disclose ratings misconduct by a European affiliate when it registered with the agency, as required by law at that time. Because the alleged misconduct occurred before the financial overhaul law took effect, the SEC said it lacked jurisdiction to pursue an enforcement case against Moody's. **

(3) What Makes America Great: Layoffs!  September 1, 2010 - I am watching Squawk Box around 6:30am as I get dressed this morning. The conversation turns to various incentives in Germany, where firms are actually paid not to lay people off in a downturn. (Firms cut hours, but keep most of their staff).

The lower German unemployment rate of 7% has less people with financial hardship, so the public continues to work, spend, save, invest, engage in all manner of economic activity. We are told this is the reason Germany’s economic data — employment, sentiment, retail consumption, etc. – looks so much more robust vs. the US.

But the German approach of maintaining taxpayer-supported employment is immediately criticized. Any discussion such as this — more taxes! — Must immediately be criticized. A guest notes that in the US, CEOs that engage in the greatest number layoffs are rewarded with the highest levels of pay and bonuses; apparently, this is proof of its appropriateness.

Guest host Andrew Ross Sorkin makes an effort to argue that the cuts are short term, some of these companies have cut too far into the bone — and is mostly steamrolled. The massive USA layoffs are defended, erroneously acknowledges as a Tragedy of the Commons [1]. (The correct dilemma they were looking for is the Paradox of Thrift [2]).

(4). August trading volume -30% against this period last year and now its not just public sidelined and so goes media’s theory about all that cash that was due to rush in any minute starting in January of any year hasn’t and won’t happen

(5). For the month, the Dow is down 4 percent, while the S&P is off 4.5 percent and the Nasdaq is down 5.8 percent The fact that two of the weakest areas of the overall economy (the consumer and the housing sector) can show resilience, even for a short time, suggests that other areas will also be moving on into growth, Equities have been pressured in recent weeks by bearish economic data and anemic trading volume, which has exacerbated moves. In the month of August, a reading of manufacturing activity in the Mid-Atlantic region and U.S. housing starts for July both missed expectations.

(6). Even after most banks have been bailed out with 120 closed this year, the total of troubled banks has grown to 857 (see charts that follow): Bank failures reported to FDIC and Cumulative Bank failures also repoted to FDIC

(7). As to why the public is gone from the markets – could it be from misadvice?
One of the things we have harped on around here is the tendency for humans to be backwards looking in their sentiment.
The Recency Effect means we monkeys place disproportionate emphasis on recent stimuli or observations, regardless of worth or significance. Indeed, investors become bullish after they buy stocks, bearish after they sell them, as part of the self-rationalization process to justify their actions.

Consider: In October 2007, 4 days from the all time market top, the WSJ discussed how unlikely another 1987-like crash was (Exorcising Ghosts of Octobers Past).

That was a backwards-looking perspective, coming after 5 years of upwards market movement. Perspectives sure changed following the economic collapse: One week after the Flash Crash, the WSJ noted how “the May 6 selloff had parallels to 1987” (How the ‘Flash Crash’ Echoed Black Monday); Is it any surprise that a 55% collapse in indexes during the prior 30 months subsequently impacted the tone of that article?

(8) Having seen this movie before as another CEO leaves in disgrace he also takes over $400 million with him and SEC doesn’t want to investigate while the FCIC is toothless

Lehman, Wachovia CEOs coming before panel- AP An inquiry panel is hearing from former CEOs of two big banks that succumbed to the financial crisis, Lehman Brothers and Wachovia Corp., as it delves into the "too big too fail" predicament and potential system wide risk from financial institutions.

We could do this all day, but at some point the "experts" will have to concede the panic button was hit and the mass exoduses out of the stock markets is doe to their own self dealings to which we rest on our point… Capital markets cannot function without capital so in time they will finally appreciate they screwed themselves in the end by cannibalizing clients

MARKET & CHARTS #2:  Bifurcated forecasts upgrading at highs only to now downgrade RIMM at new yearly lows and soon will be the same on GOOG – AAPL, INTC and CSCO then its only who’s next. View this from yesterday’s chart presentation of breaking of base building process:

•	RIMM: Bernstein Cuts Ests, Target, On iPhone/Android Threat Research In Motion (RIMM) shares are coming under pressure this morning from a bearish note by Bernstein Research analyst Pierre Ferragu. The analyst, who already had an Underperform rating on the shares, cut his price target on the stock to $40, from $55. He also chopped his EPS outlook for the February 2011 fiscal year to $5.09, from $5.24; more disturbingly, he reduced his FY 2012 forecast to $4.11, from $4.84. The Street consensus is for $5.55 this year, and $5.96 next week

We also know of late how the recommendation from floor traders at the NYSE also suggested for viewer to buy EK two days after we sold. This from the geniuses that make their living playing professional trades were the same clowns that told viewers to short the indexes in March of ’09!

EK: They said to buy ahead into May and pay $8.50 after we sold our purchases from $3.50

Those professionals for institutions bought INTC hand over fist the day they reported; any wonder why money has gone to money heaven and is not in the markets where capital is sourly needed?

INDEX: Media can't bury this when employment numbers will be reported or ISM, so traders are celebrating China not our own miserable economics and for the moment any double dip chatter is silenced

* Stock futures surge on signs of overseas growth Stock futures point to sharply higher open after upbeat economic reports in China, Australia   In this Aug. 10, 2010 photograph, specialist Frank Masiello, center, directs trades at his post on the floor of the New York Stock Exchange, in New York. Stock futures surged Wednesday, Sept. 1, 2010, after upbeat signs of growth in China and Australia lessened worries about a global economic slowdown. (AP Photo/Richard Drew)

Stephen Bernard, AP Business Writer, On Wednesday September 1, 2010, 7:52 am  NEW YORK (AP) -- Stock futures surged Wednesday after upbeat signs of growth in China and Australia alleviated worries about a global economic slowdown. Overseas markets rose sharply after reports showed the pace of growth in China's manufacturing sector rose in August for the first time in four months and Australia economy grew by the fastest pace in three years during the second quarter.

Rectangles should generally be traded as continuation patterns.  They are indecision areas that are usually resolved in the direction of the trend.

Research has shown that this is true far more often than not. Of course, the trendlines run parallel in a rectangle. Supply and demand seems evenly balanced at the moment.  Buyers and sellers also seem equally matched.  The same 'highs' are constantly tested as are the same 'lows'. The market vacillates between two clearly set parameters.  
(While volume doesn't seem to suffer like it does in other patterns, there usually is a lessening of activity within the pattern. But like the others, volume should noticeably increase on the breakout.)

Once the consolidation congestion zone ends the trend direction will continue lower - see Rectangle explanation below

MBL 9.01.10 8:45 AM