Hello from pitch-black Palo Alto, where I stand bleary-eyed and, for no particular reason except intense curiosity, am watching all the quotes whiz by now that the jobs report has come out. The market’s reaction is pretty fresh (since the information came out, as ZH likes to say, “moments ago”) but here’s my quick told-ya-so take:
- Jobs growth is weakening – no big surprise here. I think there’s a huge amount of fake, phony, and flimsy to this recovery, and it’s evident from a swath of economic data that things are petering out.
- Slope+ members are probably happy looking at a particular symbol’s reaction
- Interest rates are going to stay zero forever just like I’ve said over and over and over. All this chatter about “March 2015??” or “June 2015??” or “September 2015?” is a joke. The interest rate graph has been bearish for years, and bond bulls are going to continue to beam. We are heading into a deflationary environment, and the likelihood of interest rates going up are the same as {insert absurd visual here about Yellen or Hillary that the kinder, gentler Slope is too nice to print.}
- As for ES and NQ, I rely on my permanent mantra: the redder, the better.
