There was no action Thursday. Traders are waiting on Friday’s monthly employment situation report.
The way Chairman Ben has the market cornered, either a better than expected or worse than expected outcome can be spun like cotton candy into a bullish reaction. That is the normal course of business on Fraud Street; however, because the market has gone up almost every day this year without a pullback, traders are looking for a reason to book profits. Although the odds are probably low, it is a possibility to be sure due to the ridiculous Financial Maoism of Chairman Ben.
Market consensus is for job gains of 171,000 and the unemployment rate to fall to 7.8% from 7.9% and that’s a long way from Chairman Ben’s edict that the money printing (read: counterfeiting) shall not stop until the rate is below 6.5% - and surely that is a moving target, to be changed whenever the Chairman feels it necessary. After all, changing his mind is a Chairman’s prerogative.
Bloomberg posted this of the morning report…
Market Consensus before announcement
Nonfarm payroll employment in January continued to grow at a moderate pace, advancing 157,000, following a gain of 196,000 in December and an increase of 247,000 in November. Private payrolls posted a gain of 166,000 in January after increasing 202,000 the month before. Average hourly earnings rose 0.2 percent in January, following a boost of 0.3 percent December. The average workweek held steady at 34.4 hours. Expectations were for 34.5 hours. However, the unemployment rate reversed course a bit, rising to 7.9 percent in January from 7.8 percent the month before.
Trade well and follow the trend, not the perma-bull OR perma-bear "experts."
Best Trades to you,
Founder & President- Trading Advantage