S&P
500 was down 2.5% today on the bad employment report.
If
you missed it, the Bureau of Labor Statistics reported that there were no jobs
created in August. Oddly, the press
jumped on this and reported that it was the first time that this had happened
since 1945. Now it is not odd that they
reported the bad news – and it was very bad since it is another strong
indication we are headed into a recession.
The odd thing is the fact that it was zero is simply a numerical
coincidence. Last August we lost 59,000
jobs. Maybe the press doesn’t understand
that -59,000 is worse than zero.
This
chart looks a lot like the GDP report I posted a few days ago and that is not a
coincidence. Low GDP numbers and low
employment numbers go together.
The
Navigate the Stock Market analysis remains HOLD again today.
I sold on the 27 July sell signal at S&P 500 1301 and I am
defensively positioned with only a small amount of my portfolio invested in
stocks. (Zero stocks in the 401k.) I upped
the short position to near 100% short in the trading portfolio.
(See the page “How to Use the NTSM System” – the link is on the right side of this page).
