The collision of global markets and social mood

Friday, September 6, 2013

Bad News Is Still Good News

The real number today is 1664.37. I don't much care about the vagaries of the NFP number other than it would be nice if enough people had real jobs. But if the S&P can't get above the 50-day moving average, it won't matter what the final number is.

It's endless revisions that make these government numbers ridiculous. Market levels are a much better indicator.

By the way, the number was 169K, well below consensus of 177K. Pathetic. And the revisions were even worse.

If the market can bust through the 1664 level, 1678.27 is the next spot -- the 61.8% retracement from the 1627.47 lows. And the next gap is at 1685.39. The way the market has been acting, I'm more than happy to let it get as high as it can.

There is chatter along the lines of "Hey wow, look at the 10-year yield this morning. It's coming down. Cool!" In other words, Taper Off.

It's overdue for a bounce. But until price gets above 126, it can keep sliding.

The Bad News Is Good News dynamic is alive and well, and the reason why I treat this market with extreme care.

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