“Initial jobless claims — a close proxy for layoffs — dropped by 23,000 to a seasonally adjusted 340,000 in the week ended May 18, the Labor Department said Thursday. Economists polled by MarketWatch expected new claims to decline to 343,000 from a revised 363,000 in the prior week…The bigger problem with the labor market is lackluster hiring. The economy has added an average of 196,000 net jobs a month through the first four months of 2013, but that’s far below the pace necessary to rapidly reduce the nation’s still-high 7.5% unemployment rate.” Story at…
Mish: Note the blatant hypocrisy of Bernanke whining about non-existent cuts and about tax rollbacks the country could not afford [in earlier testimony], while warning Congress that something must be done to put the federal budget on a sustainable long-run path.” - Excerpt from Global Economic Trend Analysis
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Thursday, the S&P 500 closed Down 0.3% to 1651 (rounded) after starting out the day with more than 1% losses.
The NTSM system sold at 1575 on 16 April. (This is just another reminder that I should follow the NTSM analysis and not act emotionally – I am under-performing my own system by about 2%!)
I have no problems leaving 20% or 30% invested. If the market is cut in half (worst case) I’d only lose 10%-15% of my investments. It also hedges the bet if I am wrong since I will have some invested if the market goes up. No system is perfect.