Jobs++, Now What?

Sorry to have waited so long to write a new post. I hope you all enjoyed your weekend as I know I certainly did. I did not post after the job report on Friday because, quite frankly, I did not want to seem like I was whining. So the job number was flamboyant enough for the equity bulls and good enough to beat down the metals. 175,000- this one number is enough to forget all the negative that had been going around on the US economy, for the time being or maybe just for this past Friday, I guess we will just have to watch the markets in the coming days. Bottom line- this number was better than expected, however it was not good enough to keep up with this country's growing population and how many of these jobs are true good paying jobs. It is the same BS with this number every month, it's always the headline number that gets the markets attention and the previous numbers are always somehow revised for the better, some things never change. I have been watching this BS for years so I do not even bother to get all worked up over it!

If you were following me last week, I guess you can say that I had somewhat of an idea of how this was going to play out on Friday, it is just that I have seen this story so many times through the years, it becomes old. Enough about Friday, let us look ahead to the upcoming week and I will show you a few things that caught my on Friday. First let's take a look at how the Dow performed to end the week, all I will say is that I am still bearish towards stocks but I would not be surprised to see further gains due to the INVISIBLE HAND and some left over euphoria from Friday's job report.

400 points off the lows, it sure is amazing how fast things can turn around at the drop of a dime! Let's stick with that tune and let me remind you at how fast things have come unwound with the US dollar and as you look at the chart below, ask yourself, why did the dollar NOT have such great gains like stocks did?

The next chart is of the 30 year US bond, please notice how they did drop right down to support. I have said that I have been watching, now we need to see if they break down through this long term support. Watch this week for some FED goons to take to the microphones to try and talk rates lower with talk of them not willing to TAPER just yet!

If they do try and do this and succeed, the US dollar will most definitely be sold off further this week and who really knows which direction the SMART money will take the stock market? I am going to show you two more charts that caught my attention at weeks end that, in my opinion are questioning the global growth theme and will need further watching going forward. Look at the tough time Copper and the Australian Dollar are having!

As bad as the US dollar has been lately, the AUSSIE just cannot garner any gains or simply hold any upside trajectory. Copper did not react the way it should have on Friday with the gains in the US stock market! The other market that we need to watch is OIL, it has continued to work its way higher and is now trading at the top of its range above $96. I will keep watching the 3 of these markets as a guide to what is most likely going to happen with the US markets. Stay tuned!

As for Gold and Silver, silver I will be upfront and say I really have no interest at this current time unless it should trade down towards $20. Gold I am interested in if we can hold $1375, if should not hold this level, we may just test sub 1350. I will more tomorrow. Be careful to start the new week!

Good night,
Martin