Friday, December 7, 2007

New Job Numbers In 45 Minutes: The Market Won't Be Happy, Either Way!

New December Job numbers come out in 45 minutes (8:30am).

If the numbers are bad, it will be the sign of bad economic times ahead -- possibly signaling a trend toward recession. (I do not expect them to be that bad, if they are not actually good. Although I think this is a superficial, shallow number that does not indicate enough -- and I suspect they can be "fudged". )

So if they are bad, although it would be a bad sign for American's, the stock market would actually be HAPPY to see bad job/economic news, because it would lead people to believe Bernakie/Fed will cut rates by .5%, instead of the "given" .25%.

If the job numbers are good, signaling a good economic outlook, then the market probably won't rally, but remain steady -- or slightly down, if anything -- since good economic signs would scare market investors that the Fed may only cut rates by the expected .25%.

So in evaluating the market effects that the job numbers will have today...you have to evaluate not only the TRUE meaning of these numbers from a literal sense...but you must also factor in the "psychology" of market investors.

SUMMARY: Unfortunately, what is good for the market and what is good for the U.S. economy do not necessarily correlate -- and strategyupdate.com feels that these two forces are often times in conflict. (Short term greed versus long term natural process of ying/yang.)

strategyupdate.com

ALERT -- 8:30am JOB REPORT UPDATE: Oh hell yeah!!! The best possible news! The job numbers came in at the perfect "neutral" figure (it came in basically exactly as expected...nothing too much, either way.)

SO THAT PAVES THE WAY TO STILL ALLOW THE FED TO STILL CUT .5%!!! (THE PERFECT JOBS NUMBER FOR THE MARKET, IF NOT FOR THE ECONOMY!!!)

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