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The Morning Look

ByGary Kaltbaum
1 Comment

Market Update:

Stock futures are waiting for the employment number as the Dow Jones Industrial Average tries to bounce off its 50 DMA line and the market waits for the fake jobs report.

Gary’s Thoughts: The employment number worse than expected so the market goes from betting on a rate hike to betting on a no——way there will be a rate hike. Futures now up decently as the easy money forever continues. As we have told you, there is and was no way a hike was coming anyhow. Dollar is down which means gold/silver and other commodities bouncing nicely off oversold conditions. On the open, major indices remain rangebound. Will be interested to see whether markets can get some juice off of this. Have a great holiday weekend. Weekly report out on Sunday.

Economic Data:

  • Employment Situation 8:30 AM ET
  • International Trade 8:30 AM ET
  • Factory Orders 10:00 AM ET
  • Baker-Hughes Rig Count 1:00 PM ET
  • Jeffrey Lacker Speaks 1:00 PM ET

Highlights:

  • SpaceX Rocket Explosion Destroys Satellite for Facebook Project
    Gary’s Thoughts: Seems like Mr Musk running into some bad luck lately. We still do not like his incestuous buy of Solar City.
  • Oil Prices Fall -12% in Last Week Providing A Little Relief At The Pump For U.S. Consumers Ahead of Labor Day
    Gary’s Thoughts: Very oversold and with dollar sinking this morning, expect a bounce/rally.

One Comment

  1. After the weekend, we will be 2 weeks from the fed meeting.

    Will they pull the market back for 2 weeks just before the fed ?
    I doubt it.

    My bet is the market sits right here, like a patient dog, waiting for the fed to feed it.

    We are too close to elections for the fed to mess with interest rates, so the fed will likely hold, and the market will blast off into the elections.

    Will the market ever pull back ?
    Ever ?
    I am starting to doubt it.
    The global economy is too deeply in debt, and too dependent upon “printing” to sustain itself.

    Will the fed raise interest rates ?
    Maybe,,, maybe by .25 %, but they will do it in correlation with other major central banks.

    As the fed raises interest rates, the carry trade will simply look elsewhere, for a flood of money, and they will find that flood in Japan, the ECB, or the Uk, or ….somewhere.

    And the markets will simply keep going up, and up, and up…..

    My 2 cents

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