Jobs Jolt

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Well, the demolition of the bears this week is going to be a five-for-five affair, as the latest jobs data shows rising unemployment and weakening earnings, which is music to the Fed’s ears. Yep, wages are growing at 0.2% a month, which explains why a teenager can score over $20 an hour flipping burgers these days.

Anyway, the /ES has moved up literally hundreds of points in just a few days. What’s interesting about the /ES is, looking at the moves higher this year, they are taking less and less time. This most recent move has been, by FAR, the quickest of any in 2023. I’ve drawn red rectangles showing the bottom-to-top timespan, and whereas before it took months, or at least weeks, this time it took only days.

For some reason, bonds were late in getting the memory, but since they did (on Wednesday morning) they have roared higher with ferocity.

The biggest percentage mover of all is the small caps. The /RTY is up about 1.5% as I am typing this, and they are well above their 50% retracement level.

I’ve got 20% cash on the sidelines, so I’m going to watch and wait today to see if there are opportunities to round out my positions with that buying power.