![Orwell2](http://www.etfdigest.com/images/stories/447x336xOrwell2.png.pagespeed.ic.SIXXB-BWLr.png)
Who would buy stocks in this era of central bank lies and deceit?
Pension Funds? Maybe.
Hedge Funds? Not likely given the appalling low volume.
Central Banks are simply scratching each other’s backs is my belief. There are plenty of non-public tools they can use to keep everyone in the dark. And, that’s just where they (administration and the Fed) want you.
Since they’re all playing the same game they support each other’s actions. Is their proof? Sure. Japan admits its buying shares; so too is Switzerland and other European central banks.
The ECB is buying corporate bonds and they won’t stop at just that and China has been propping their stock markets with no apology.
Today’s dreadful economic data, led by the horrific Employment Report was bought, not sold like one would think, was the cherry atop a cake of “bad news is good” nonsense.
If you’re going to make a living in markets, you’ll have to accept the current craziness even with the upside down action. For a trend-follower like ourselves either retire or, go with the trends to survive.
Market action in the U.S. Friday was a shocker, but markets sagged only slightly. And when the “bad news is good” pimps seized the tape many shorts were squeezed and stocks rallied sharply off their lows.
The laughably weak Employment Report fell to only 38K new jobs vs 158K expected with the prior revised from 160K to only a pathetic 123K. And, the BLS didn’t stop there, the Unemployment Rate fell to 4.7% from 4.9%. Further, the participation rate fell once again to 62.6%The disconnect in the numbers from the Treasury to the BLS reveals who’s lying and and/or manipulating numbers. Please, no administration victory parade here.
But that’s not all. The International Trade deficit dove to -37B vs prior -35B; PMI Services fell to 51.3 vs prior 52.8; ISM Services fell to 52.9 vs prior 55.5; and Factory Orders were weak remaining flat at 1.9% vs prior 1.7%.
It now seems likely the Fed will not raise interest rates at June’s meeting and July’s opportunity is probably off the table.
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 leveraged short (red).
![6-3-2016 3-55-42 PM](http://www.etfdigest.com/images/stories/598x432x6-3-2016_3-55-42_PM.png.pagespeed.ic.cSZuS6qEci.jpg)
Volume picked up on the selling once again while breadth was mixed.
![6-3-2016 3-56-09 PM](http://www.etfdigest.com/images/stories/599x730x6-3-2016_3-56-09_PM.png.pagespeed.ic.d70G0nI14t.png)
![12-17-2015 9-04-44 PM Chart of the Day](http://www.etfdigest.com/images/stories/12-17-2015_9-04-44_PM_Chart_of_the_Day.png.pagespeed.ce.b4x3xhXQKA.png)
![6-3-2016 3-59-45 PM xlf](http://www.etfdigest.com/images/stories/x6-3-2016_3-59-45_PM_xlf.png.pagespeed.ic.0cxOz1GulW.png)
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I’ve said all I need to say within the introduction.
Have a pleasant weekend.
Let’s see what happens.
I’ve said all I need to say within the introduction.
Have a pleasant weekend.
Let’s see what happens.
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