This morning, the S&P 500 Index e-mini futures (ES U1) are trading lower by 1.00 point to 1216.75 per contract. The futures markets are holding up well considering that most European stock indexes are under pressure this morning. The German DAX is trading lower by 1.60 percent before the markets open for trading in the United States. European markets must be followed closely at this time since this is where a lot of the fear has come from. The stock markets in the United States have now rallied higher since August 22, 2011, the S&P 500 Index has gained over 100.00 points from that low. Traders and investors must be on guard today against some profit taking before the highly anticipated non-farm payroll report by the U.S. Labor Department. That important report will will be released tomorrow morning at 8:30 am EST. This job report should cause a short term reaction in the stock market.
I’m quite on the same page. Employment, though, is a distraction. So many trillions of bailout in, and still there’s contraction. This is the work of a hyperinflationary collapse whose QE only accelerates contraction’s course (a la Wiemar Germany 1923).
Every psychological trick in the book — spin — levitates the riskiest of all tangible financial assets — equities — and this will continue until the very precipice is reached, as always is the case. However, the gig is up and August amply announced it. So, bounce off bottom whose dearth of positive technical divergences is plain suggests, at the very least, a retest is in store. Less spoken for even among the fearful is risk of a panic. If not for banking system insolvency, would collapse be necessary to gain further bailout (a la 2008)?
Hey welcome Tom! Thanks for the great comment.
The bailouts will continue until the entire system is insolvent. Each time the market collapse there will be addition QE (in various ways of course.)
By the way, I am going to go ahead and make you a contributor so you can publish articles on our site.
Hi Tom,
You now have the contributor status. Feel free to submit your articles and engage the audience on FocalEquity.com. Welcome aboard.