Miss Market is just about the most confounding, fickle creature that there is. After yesterday's explosive rally, we get the dreaded countermove that wipes out all of the gains. What is doubly confounding is the headline reasons for the tank.
Unemployment rate surges to 5.5%, highest since 1975; give up any hope of an interest rate hike. That is some of the headlines I have seen. What this, Miss Market goes into a swoon because rates won't go up??? All year long she was just begging for more and more rate cuts. How can we ever please her????
And lets take a closer look at those unemployment numbers. The economists out there said the economy was expected to shed 60,000 jobs this month, but guess what, it only shed 49,000 jobs. Wow, a surprise to the upside, we should be happy that the economy is not losing jobs as fast as feared, right?? But no, no one talks about that, they all focus on the unemployment rate. The unemployment jumped because a bunch of teenagers joined the work force - duh, doesn't everyone know that happens at this time of year. So what is the big surprise in these number?? Where is the bad story for the economy??
I got to figure that there will be a little bit of recovery later in the day as some bargain hunters and buyers from yesterday come to their senses. Overall, this will put us back on the fence watching to see which way the mercurial Miss Market is going to go.
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