Thursday evening and early Friday morning the market waited on pins & needles for the heretofore important monthly jobs data. Traders and investors alike were excepting a very good print with a consensus of 160,000 new jobs created. In fact, the range of economist estimates was from roughly 80,000 to 200,000.
Yeah, not so much. In fact, the report was so bad; it was lower than the lowest estimate. The report was so bad it was FOUR times WORSE than expected. At this point of a so-called recovery there should be a great deal of job creation and it just isn’t happening. Just to keep pace with new job seekers the economy must produce approximately 150,000 jobs per month; therefore, it is no surprise that the unemployment rate went up to 9.8% with only 39,000 new jobs created.
So we have a very, very bad report here. Within minutes, analysts on CNBC were “promising” (speculating) that this report is not important and will be revised higher in the next release. The odd thing is that almost all weekly jobs reports are revised worse than originally reported…for several months now (and a report is released once a week). But this fact doesn’t matter to a One-Way street sign (read: market shill/analyst).
As you surely know by now, despite the report the market rallied to a green close. Not only were analysts promising each other that the report would be revised dramatically higher next month, but they were also suggesting that this report was so bad – it was good. Yes, some were saying that this report will give cover to the Fed to print even more money to buy even more worthless securities (for the benefit of the banksters only). In other words QE3 is in the near future and it was time to buy, buy, buy equities.
Most of the day, however, the market was very dead until the final hour. A full hour before the media received an early transcript of Ben Bernanke’s appearance on 60-Minutes the market traded straight up. Said another way, the “in crowd” (aka Goldman Sachs and a few others) got the news even before CNBC and made a fortune. During the piece on 60-Minutes, Bernanke is asked if the Federal Reserve would be willing to add to the recent $600,000,000,000.00 Treasury-buying-scheme. Without hesitation, his answer was yes.
Yeah, not so much. In fact, the report was so bad; it was lower than the lowest estimate. The report was so bad it was FOUR times WORSE than expected. At this point of a so-called recovery there should be a great deal of job creation and it just isn’t happening. Just to keep pace with new job seekers the economy must produce approximately 150,000 jobs per month; therefore, it is no surprise that the unemployment rate went up to 9.8% with only 39,000 new jobs created.
So we have a very, very bad report here. Within minutes, analysts on CNBC were “promising” (speculating) that this report is not important and will be revised higher in the next release. The odd thing is that almost all weekly jobs reports are revised worse than originally reported…for several months now (and a report is released once a week). But this fact doesn’t matter to a One-Way street sign (read: market shill/analyst).
As you surely know by now, despite the report the market rallied to a green close. Not only were analysts promising each other that the report would be revised dramatically higher next month, but they were also suggesting that this report was so bad – it was good. Yes, some were saying that this report will give cover to the Fed to print even more money to buy even more worthless securities (for the benefit of the banksters only). In other words QE3 is in the near future and it was time to buy, buy, buy equities.
Most of the day, however, the market was very dead until the final hour. A full hour before the media received an early transcript of Ben Bernanke’s appearance on 60-Minutes the market traded straight up. Said another way, the “in crowd” (aka Goldman Sachs and a few others) got the news even before CNBC and made a fortune. During the piece on 60-Minutes, Bernanke is asked if the Federal Reserve would be willing to add to the recent $600,000,000,000.00 Treasury-buying-scheme. Without hesitation, his answer was yes.
Trade Date: 12/3/10
E-Mini S&P Trades*
(before fees and commissions):
E-Mini S&P Trades*
(before fees and commissions):
- 1. No Secret’s trades filled today.
- 2. Algorithm positions (1)
- 3. “Reading the Tape” positions (4) …combined Secret’s, Algo, & “Reading the Tape” total… +1.00
Sign up as an AvidTrader Member to receive "The Technician" Value Area's each day. The market then has an 80% chance of filling the Value Area. Many traders familiar with the Value Area and the techniques that go along with it use it to help them decide what trades to do each day. Join and see how this technique can help you trade more successfully!
No comments:
Post a Comment