shouldn't todays shocking employment numbers cause it to take a sharp nose dive ? can it get any worse than +500,000 jobs lost in one month ?
Too much talk of the market being overdue for a very strong rally and the economy being at the end of the recession is the reason for not being down as much as expected. We are due for a short term rally before falling off the next cliff. Negative news doesn't mean a whole lot to the market right now. The actual unemployment rate is far higher than the stated 6.7% if factoring in people who are currently not searching for a job. I wouldn't be surprised to see the market close in the green today. It would be great for the media who could push that the market has set a bottom over the weekend. CNBC would have an absolute field day if we close in the green. They would quickly call all of their bulls to interview.
My call is a strong finish for the last hour trading today, So if we can hold Dow 8230 'ish and higher for the afternoon, we may even get a positive close
Dont forget HIG Hartford Reported very good earning or higher earning guildlines A FINANCIAL Company HIG RAises Guidance Woh !!!!!!!!!!!!!!!!! I never thought i would hear that till next year
Employment numbers are one of many lagging indicators. If they continue on this path, you will see the S&P far below 700. This was nothing shocking to the STREET, only to the press. However, a few more of these "Shocks" and you will see a massive sell move. VIX is 60 plus, so something could break, not today, not tomorrow, but with vix in the 60s, a move is coming.
It is pretty comical that since the employment numbers are a decrement they are lagging. Once they start to turn around the numbers will be a leading indicator of great things to come.
So you want the market do the way that you have been reasoning. Let me borrow a phrase from somebody in another thread. All of the most positive and powerful thinking you can summon won't cause a trade to go your way if the market has something else in mind.
We had a massive sell off only weeks ago. We will probably have another one, but the recent sell off was not unjustified. It was in large part for the confirmed news we see today. Wont go to zero in a straight line.