The jobs report certainly disappointed, didn’t it?
Just 88k new jobs – “This is a punch to the gut. This is not a good number.” said former Obama econ advisor Austan Goolsbee, stating the painfully obvious.
Chin up, Austan, at least the unemployment RATE fell to 7.6% officially, but hey… that’s because 496k more souls just dropped OUT of the labor force.
We haven’t had a labor force participation rate this low for 34 years (that would be right around the Golden Age of Jimmy Carter. Hmmm).
We could use this time to kick the hapless Obama economic team, but instead, let’s all do a golf clap for the money supply pimp, Benjamin ‘printin Benjamins’ Bernanke.
HIS plan to pump 85 billion into the economy each month until employment improves is producing spectacular results boy.
This week the stock market tried its darnedest to sell off and take a breather, but those steroid dollar fueled bulls would have none of it.
The “economic recovery through printing crap-tons of currency” plan has now been officially adopted by Japan and on queue the Nikkei index has shot up like a scalded cat.
The bears tried to take the S&P down today but got slapped back pretty hard by the close.
As you can see in the first chart, the uptrend zoomed down through the support line and came back up before the final bell.
This was a warning to the bulls that if they slip up just once this market is going to drop their pants.
Another bunch of bears got whacked today, and that was all the folks who were expecting gold to fall through 1,550.
While it is true that the gold rally failed to stay above 1,620 and as a result fell through the short term up trend line, the support at 1,550 is held nicely today.
I did expect at least a bounce off these levels and next week will see what the gold bulls can get done. They need to hold this level to avoid a much bigger drop in gold.
At the end of the first week of April the stock market and gold bulls find themselves backed up against a wall of angry bears. Good times.
See you next Friday.
David K. Miller
Managing Editor, Absolutewealth.com