Friday, August 6, 2010
I could be wrong but my gut is telling me this is a bear trap. The jobs numbers were awful. Just dreadful. Huge revision to June. Miss on total jobs and private sector jobs...but, the emphasise will move to Tuesday and the Fed meeting. It is the classic bad news is good news for the equity markets. The markets will start looking towards Tuesday for possible easing from the Fed. It looks like currencies are starting to price that in. Euro up strong. Copper is flat not having any follow through from the sell off yesterday. I am not shorting additional here. It smells fishy. I do think you will know in another hour though whether this is a trap or the real thing.