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Are Markets A Joke?
 
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Markets are a joke to some certainly.

First let’s start with the today’s economic data.

The always bullish financial media described them as “solid” which is the only term they know these day’s as it’s been adopted by Yellen. So, why not use it?

The Employment Report made for a positive headline (solid) saw jobs gain of 215K vs prior 245K. That’s a reasonably good number but it pales in comparison to the prior month. The unemployment rate rose slightly to 5% vs prior 4.9%. Most significant employment was greatest in the least paying jobs: 51K (education); 48K (retail) and 40K (leisure & hospitality). Within those three sectors is where hamburger flippers and low paying part-time jobs are.

Both the PMI Manufacturing Index rose a touch to 51.5 vs prior 51.3 and ISM Mfg Index rose more sharply to 51.8 vs prior 49.5. But SouthBay forecasting shows declines in manufacturing with -12K in energy (slowing) while other manufacturing jobs declined -29K. Another inside the numbers view.

Consumer Sentiment rose slightly to 91 vs prior 90 but Construction Spending fell to -0.5% vs prior 2.1%.

It seems the 90% correlation link to stocks and crude oil are now disconnecting as crude declined nearly 4% while stocks continued to rise. It appears Saudi Arabia is only prepared to “freeze” production as long as their buddy Iran participates—fat chance.

U.S. stocks rose while the rest of the world saw stocks fall, especially in Japan.

Below is the heat map from Finviz reflecting those ETF market sectors moving higher (green) and falling (red). Dependent on the day green may mean leveraged inverse or red leveraged short. 

4-1-2016 3-23-40 PM
Volume was again ultra-light while breadth per the WSJ was mixed.
4-1-2016 3-24-25 PM
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12-17-2015 9-04-44 PM Chart of the Day
 
 
 
4-1-2016 3-30-44 PM USO


Charts of the Day
  • SPY 5 MINUTE

    SPY 5 MINUTE

  • SPX DAILY

    SPX DAILY

  • SPX WEEKLY

    SPX WEEKLY

  • INDU DAILY

    INDU DAILY

  • INDU WEEKLY

    INDU WEEKLY

  • RUT WEEKLY

    RUT WEEKLY

  • NDX WEEKLY

    NDX WEEKLY

  • XLF WEEKLY

    XLF WEEKLY

  • XLE WEEKLY

    XLE WEEKLY

  • XLY WEEKLY

    XLY WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • FXY WEEKLY

    FXY WEEKLY

  • GLD WEEKLY

    GLD WEEKLY

  • DBC WEEKLY

    DBC WEEKLY

  • EFA WEEKLY

    EFA WEEKLY

  • EZU WEEKLY

    EZU WEEKLY

  • EEM WEEKLY

    EEM WEEKLY

  • AAXJ WEEKLY

    AAXJ WEEKLY

  • EWJ WEEKLY

    EWJ WEEKLY

  • ILF WEEKLY

    ILF WEEKLY

  • NYMO DAILY

    NYMO DAILY
    The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.

  • NYSI DAILY

    NYSI DAILY
    The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended on an intermediate term.

  • VIX WEEKLY

    VIX WEEKLY
    The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.


It’s been an entertaining week if you’re interested in show business.

For me, manipulation by central banks along with bizarre proposals and new experiments from them are still in charge of the tape.

Traditional analysis will have to take a back seat to whatever comes from central bank laboratories.

Now we’ll see going forward just how weak earnings reports will beat much lowered expectations and more stock buybacks funded by more debt will be received.

A Friday news dump feature new the State Department will not do anymore inquiry into crimes of Hillary Clinton.

This all reminds me of the Nixon period when Ms Clinton was a prosecutor of his deeds.

Further you may remember Nixon’s Saturday Night Massacre when he fired his then Attorney General when the gentleman refused to fire the special prosecutor. I expect willing cooperation from Obama given the Clinton’s Teflon abilities.

Let’s see what happens.

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