I tend to wake up early – – sometimes way too early – – and this morning was no different. After the tech earnings wipeout yesterday afternoon, the market spent the entire night recovering as we all awaited the unemployment report. Oddly, I felt good when I saw how high it had climbed, because if this market does one thing well, it is this: it disappoints the crowd. I would have been far more nervous if it was down hard.
Thus, the report came out, and it was exactly what bulls did NOT want to see, which was a total blow-out of strength in the jobs market. I mean, we’re talking almost a 200% beat of the forecast.
Thus, the market instantly shit itself, wiping out all the gains and taking out the lows.
Likewise, gold dropped, since the dollar strengthened (finally)……
And bonds in particular got hit hard, as interest rates spiked higher.
Another thing which gave me some measure of confidence was the tremendous return of Cathie Wood’s unchecked arrogance. You see, her empire of funds got totally destroyed last year, but she finally had a great month (January 2023). Look, if I lose 90% of my money in 2022, and then I’m down only 80% by the end of January, that is a 100% “gain”. So I could go on and on about my amazing 100% gain. It doesn’t make me any less of a dork.
Anyhoo, she declared to the media (which seems to have boundless attention for this loudmouth) that she IS the new NASDAQ, since the NAZ so behind the times and she’s actually the one who sees the future clearly. I put this little graphic together and tweeted it, but virtually no one got the reference. Oh, well. I do try.