Stock market does what it needs to do
I have said for some time that there is manipulation in the stock market. When investments funds leave the stock market yet the market goes up that is a sign. Manipulation is easiest during low volume. It only takes two people to change the price of a stock, one buyer and one seller. During low volume it takes relatively little money to run a stock up. With computer trading it is even easier. When the central banks are on the fence about injecting money there usually was a crisis to blame for the market to drop. Always the crisis was timed to build and then peek 6 weeks prior to a major Central bank decision. For the election the new was timed to run the market up and give 3 consecutive profitable months prior to the elections. Expecting this I had predicted that the market would peak in Sept level in Oct then drop in november since your 401k stamens that you get before the election would not show the drop till after the election. After the elections many reports were revised to be not as rosy as previously reported. Other events were the launch of GM ipo, the market had to run down for a Fed meeting then had little time to be on the up swing for the IPO, I new they would have to hit it hard and fast and they did, down for the meeting up the the ipo that was only several weeks apart. I got to the point to where I would have my attorney record my predictions some times 6 months in advance of the events.This year is different then the other years, The big event of this year is the US Budget.For congress to give Obama money Obama has to show reductions in the deficits rate of climb; Show success in his decision to bail our the Auto industries; Not show much inflation; reducing the trade deficit and of course lower unemployment.For Senate to support his push for renewable energy, health care, education and renew manufacturing at home,all reports or at least most need to convince congress that we can afford to spend.Instead of predicting the value of companies it has made more sense to ask what does the maker need to do.After the budget is voted on the inflation reports will be "revised" up.Other reports will likely be revised but the one I feel most confident about is the inflation.