Saturday, March 9, 2013

What’s not to love about the jobs report and its rally...

Now that was a show. Ben and his band of manipulators were in full regalia this week…leaving the markets in perilous positions. As it turned out, the 80% of the traders who thought the market would be up this week, voted correctly. As I had made clear on these pages, I was expecting a reversal on the jobs report - which did not happen. However, the picture is now more clear and more dangerous.

The volume for the week was abysmal. Sometimes makes me wonder if the Fed is not directly purchasing shares in one of their many unnamed accounts at JPM and somehow messing with the markets in ways that we are of yet unaware. I am certainly NOT of the belief that one should take very much of the hyperbole, data or claims from the FED at face value. Take for example the Jobs report even though it is not emanating directly from the FED. I am quite sure that preparation of these numbers has been very well engineered. The FED needs to have the unemployment rate dropping to have any chance at the perception of credibility. This jobs report accomplished that. However, Americans not in the labor force increased 296,000 between January and February and incomes continued to decline. What we can see here is that the powers that be will continue to paint the numbers until it is impossible to do so any longer because some undeniable amount of the population is unemployed yet they are still showing a declining unemployment rate. If 40% of the US population is unemployed but the supposed workforce has dropper appropriately, the BS (BLS), will still be able to get to the magical 6.5% unemployment rate…all while government revenues decline and entitlement continue to expand. It is utterly incredible that this jobs report at best created very few jobs and on its face actually lost around 60,000 jobs, yet its promoted, pumped and ironically not dumped in the markets.

I have no doubt that the jobs report will be dumped as the anticipated pumping now progresses to the void in the official disinformation campaign. Meanwhile, the markets sported nasty candle closes, ridiculous optimism of 83% for the S&P500 and 85% for the NASDAQ) and unsustainable technicals…and all of this on no volume and a horrid jobs report and record Fed intervention and bank injections.

Treasuries are testing their broken wedge, VIX failed to make a lower low and the NASDAQ and the Transports failed to make a new high. This is a mess and will not be ending well. Additionally, Apple Computer has failed to bounce at all, and is prone to a break of support here which will target the $220 area. Still seems amazing to see that reversal from 700 to 200ish as even a plausibility for an inefficient market. But this is a FED incented market and they apparently have taken their employment mandate to manipulated employment numbers, prices and interest rates very seriously by creating bubbles and leverage in any corner willing to accept it.

It is truly amazing to me that the official jobs report represented jobs created by simply ignoring and not counting the destruction of 296,000 jobs. It just astounding that they are willing to essentially double (or worse) new jobs and present it as a viable and true number.

Charts to come...
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