I don't think anyone was surprised to see that America's unemployment rate has hit new highs last month (since last September). What may have surprised some, though, was the almost immediate drop in stocks that followed. Here is a statistical chart posted by CNN Money...
So, what we want to know is...
Loading ...As always, we would love to hear your thoughts on this current situation or even where you think things may go from here. Be sure to share in our comments section!
Best,
The MarketClub Team
I swing trade airline stocks and for some reason the ones I trade were not affected by the jobs report.
Now, Shawn, you can't be serious about the 1 million for each over 21 years old?? If you are, then you
probably agreed with the Casey Anthony verdict.
Why don't we just cut taxes like crazy. That will free up tones of money and we will prosper.
Thomas
Mostly accounts were completely flat or short going into the drop yesterday. Closed out a short or two. Put on a long or two. Maybe more long on Monday.
Shawn, I totally agree with you, but that is what I thought the government should have done from the very beginning with the bailouts. After all, it's our money and we want it now! Our economy would be so much better if they had done that.
The irrational exuberance of this market is fed by earnings growth which come on the backs of the unemployed. The market continues to ignore the debt problems, the entitlement spending problems and this administrations ridiculous spending spree.
Emerging market growth will very soon, if not already, catch up to the slow down of the U.S. Economy. Wages are stagnant. Consequently, any increase in costs for consumers will hit the sales growth picture and THIS is like a snowball rolling down the hill. But it's a very slow snowball. This slow motion machine is controlled by Obama policies and ties to the mainstream media.
In the meantime, fund managers continue to bid up the price of stocks -because they can as a result of 401K and pension monies feeding those fund managers. The questions (there are two) are: Will this ever end? And, two if it ends, when will it end?
From a government standpoint, the most likely scenario is that the government will act to slow down the growth of this country's debt. However, it will continue to climb. Short term knee jerk events will continue to feed volatility but that is not the key issue. The key issue does not have two question...only one: When will it all come crashing down?
I thought it would happen a year ago. I was wrong. Socialist and irresponsible government policies keep "kicking the can down the road". Ironically, the fund managers keep taking advantage. Market reactions are no longer based on fundamentals. And yet, put together all the wisdom of all the technical chart analysts and all the socio-economic experts and no one seems to be able to forecast the "when" of the collapse. A lot of them have forecast the "event" but no one seems to be able to put a timeline on it.
For the record, I made a lot of money in the stock market right up until Obama took office, since then I haven't been able to figure out what the market will do from one day to the next. Sanity is an election away, but there's no guarantees.
Bonjour, Je crois que la situation continuera de se dégrader pour un bon bout de temps encore. Venez au Canada et vous trouverez du travail. Investissez sur le TSX-Toronto et venez travailler à Montréal. Bienvenue à tous!
"Hello, I think the situation will continue to deteriorate for a long time to come. Come to Canada and find work. Invest on the TSX-Toronto and come to work in Montreal. Welcome!"
Translated using Google Translate
The first time I visited the USA almost everything in the shops was produced in the USA, nearly all your cars were made in Detroit, America had full employment, the people were proud to be buying American produced goods.
On my last visit almost everything I saw in the shops was made in China, most of your vehicles were asian, unemployment is rising, 'Made in America' seems to be meaningless, no further comment required!
Shawn, great point about coaching in trading.
Use your time-off reading Al Brooks and Brett Steenbarger. This is the cheapest coaching one can get, yet very effective. One cannot always trade with someone looking over your shoulders.
best!
Linus
I NO SELLING, IHAVE POSITION OM AMLN. EXPECTING TO GO UP WAY UP THEN. I'LL SELL
THAT STEP DOWN IN THE DOW IS A MIRROR IMAGE OF THE STEP UP IN GOLD. THAT'S WHERE I'M TRADING
I have always believed that there are stocks going up, at any time. The problem was in being able to find them.
Using your search sites and paying close attention to the triangles, gives me a much more comfortable feeling while pursuing my objectives.
Get real Steve! A very small percentage of people are savvy investors. Entrepreneurial? How many more people are going to start their own lawn service or snow plow in winter.
Bring manufacturing back or accept unemployment benefits forever. There is no other choice! Talent in the US has gone for easy $: Investment bankers, Wall Street, trial lawyers, thinly disguised ponsi schemes etc. Too many are milking the US cow.
Where is the accountability for those who caused the mess we are in!!!
I'm out of this bloated market - for now!
I disagree that no one was surprised by the jobs number. I wouldn't be surprised to see it revised upward in a month or so. In fact the market drop came exactly in reaction to this surprise.
I don't know where others in this post work, but in my industry (electronics), even here in the midwest we cannot find enough qualified engineers to do the work on the plate. The job boards are awash with available work for qualified applicants. What is missing is jobs for semiskilled workers in construction. Until real estate turns around, this probably won't change.
I totally disagree with Carlos that this is anything like the Japan situation. The USA is not Japan. The cultural factors that created and propagated the Japan 'disease' do not exist here at all.
I am going surfing and going to long term ride it out.
Job mentality is one of the reasons we are in this mess. If people would take more responsibility and be more entrepreneurial, or better still, focus more on investing and making a living that way 🙂
Yeah unemployment is 'real' and about 17% to 25% and yes, Corporate America is making profits while the American people have less money to live. Obama is not helping the ordinary citizen unless the government wants us all collecting food stamps and unemployment checks, then this is the Obama 'success' story that average Americans can relate to. Enough with the Obama 'success' and Corporate America 'success' stories. Put Americans to work, then and only then will Obama have a hat to hang his 'success' story on.
Stocks are in a bull market, and as usual the negative reports do not
impact them on their way up. Bad news is taken in stride and even a mildly
positive news has a bullish interpretation.
I could not answer your poll because the 2nd consecutive bad employment reading is just one of many factors that caused me to take profits and exit positions. Other factors include that the market has rebounded sharply since 6/27 and is near 4/29 resistance. The market is also overbought in the short term and close to overbought in the medium term so any bad news could send folks to the exits. While the employment reading is really bad, there are plenty of unresolved issues with the PIIGS of eurozone that result in a daily soap opera not to mention the dangerous debt ceiling chicken game being played in DC either of which could create news that causes a reversal.
I lost my job 3 years ago, got rid of my 401K and all the investmens ever since to be able to pay my mortgage.While still paying student loan for grad school,I take every blue colar work that I can do short of selling my ...Do you think that I have money to trade? Think again.
I haven't been able to trade because I can't afford any coaching right now. As for the economy, I think the government should give ALL law abiding citizens 21 and older $1 million. That would get the HIGH majority totally out of debt, and also let A LOT of businesses get up and running again from a large amount of people going on a spending spree. Also a bunch of people all over could possibly get new companies started. That would get A LOT of jobs up and running again.
Shawn
Gentlemen,
Anybody that thinks this market is going to keep running up ought to be looking for some swampland as a great home site...... What we are looking at is the meltdown which began in October 2007 because of the removal of the Glass-Steagall Act by the veto proof Republican majority in 1999. The market only stopped falling in March 2009 because of massive government intervention through QE-1 and 2. Did anyone notice what happen between the end of QE-1 and the announcement of the start of QE-2? As long as G.S. is not law this market is going into the toilet because of the highly risky, highly leveraged behavior of Banking, Brokerage and Insurance that was illegal before the removal of G.S..... What has gone on since the G.S. removal is very similar to what happened during the "Roaring Twenties" up until the Crash of 1929...... There will be no more government stimulus and the natural response is for this market to go down, way down....... For those of you that think this is a valid rally, would you explain to me where the increase in Sales and Manufacturing and the subsequent fall in unemployment are? Or do you think that doesn't matter any more?
Mike
Job creation requires an EXPANDING economy. The American economy has NOT been really expanding. An ILLUSION of expansion was created by AN ADDITIONAL three trillion dollar pump by the Fed since 2008 (Look at the National Debt Chart), in an unbelievably naive and useless effort to prevent what could have been a 1 to 2 year recession/depression correction followed by healthy economic growth. Now, instead, the American Economy will likely fester and limp along for 10 years like Japan is doing. "We are NOT Japan" the pundits said! RIGHT!! As for The Market, it will probably continue to be artificially FLOATED by Uncle Bernanke and the PPT (Plunge Protection Team) since for them there is no other alternative at this point. This however, will aggravate the huge disconnect between Wall Street and Main Street. Eventually, something will have to give in a Black Swan unsuspected event.
Jobs were not a primary factor although they do cause impact to the market. I look strictly at the numbers, up or down. I pulled out completely Wed 7/6. on my longs entered on the early 5/10 crosses of the most recent uptrend. Pulled out a bit early due to declining stochastics against 5d SMA on several key holdiings. Looked like a loss of momentum around the turn. All the positions were winners. Day trades only on 7/6 all winners. Avoided todays drop completely. All cash except currently holding SLV purchased on the 3rd day of the 5/10 SMA cross. SLV was one of the few quality issues to make a 5/10 cross this week. GLD has followed but I missed the play. Was looking for exit on SLV today at 35.90 but missed it. Looking for a run up at the close. If not, will hold to see if it can break through the 36 resist. line.