US Unemployment Rises to 10.2%
The jobs reports are widely followed and can move the markets depending on how market players perceive the numbers. Canadian job losses were higher than expected at 43,200, with Canadian unemployment rising to 8.9%. The US unemployment rate is at a 26 year high at 10.2%. In trying to understand these numbers, it seems to support the hypothesis that we are experiencing a structural change in the economy. What this means is that the skill sets that are available do not match the skill sets that potential employers are looking for. It also indicates that the kinds of jobs that have been lost in automotive, financial services, retail, and construction are not likely to comeback, but rather, that different skills will be needed and new industries will emerge.
While futures were marginally positive prior to the jobs report, futures dropped into negative territory after the announcement. The DAX is slightly positive. This suggests a mixed open. The market condition scans remain weak, with directional bias only slightly positive. The market conditions scans are slightly negative. Once again the short term picture remains mixed, making swing trading more risky. Volume on the indexes has been lower than average, indicating the lack of energy in the market.
Index | Change | %Change | Level | Phase |
TSX | +109.50 | 0.99% | 11180.70 | Warning |
DJIA | +203.82 | +2.08% | 10005.96 | Bullish |
Nasdaq | +49.80 | +2.42% | 2105.32 | Bullish |
SP 500 | +20.13 | +1.92% | 1066.63 | Bullish |
Russell 2000 | +18.03 | +3.20% | 581.15 | Warning |
NYSE | +119.73 | +1.75% | 6950.16 | Bullish |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a negative bias
Energy: moderate
Primary Trend: sideways to down
Sector | Phase |
Consumer Staples | Bullish |
Healthcare | Warning |
Technology | Warning |
Utilities | Warning |
Energy | Bullish |
Financials | Warning |
Industrials | Warning |
Materials | Warning |
Consumer Discretionary | Warning |
Source: Telechart
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