Precious metals crushed lower, U.S. dollar pops higher, and ten year bond interest rate streaks higher to 2.67%. Rising dollar usually equates to rising imports and less exports...not good for GDP. Real estate market to take some blows on rising mortgage rates. Oil climbs higher mostly on fears of Egyptian turmoil. Rising gasoline prices to follow. Underemployment rate explodes higher from 13.8% to 14.3%...so even though we have more jobs, we actually have less "good" jobs.
Something tells me that everything is not smelling like roses out there. But today, SLW will suffer even though price of silver seems to be sinking below production costs...again. GLTA
We knew that PMs were going to do, but the market had no reason to move up. I placed a short bet on the market this morning when the DOW was around 15080. Things are not rosy. DoD will be laying off another 100K+ before 1 Oct. Many, many college and HS graduates trying to enter the work market. O-Care will drive small business to turn even more FT jobs in to PT. Conditions far worse than some would like us to believe.
"As a reminder: jobs have quantity and quality components. The quantity component was good enough to convince the 10 Year the taper is imminent (if not stocks, which continue to trade dislocated from any and all fundamentals). But how about the quality? In a word: not good. In June, the household survey reported that part-time jobs soared by 360,000 to 28,059,000 - an all time record high. Full time jobs? Down 240,000. And there is your jobs "quality" leading to today's market euphoria (if only for now)." (Source - BLS)