Market Commentary: Markets Soar Higher On The Opening Bell

Written by Gary

Opening Market Commentary For 10-22-2013

Premarkets were up +0.10% and bumped up to +0.30% after the 8:30 am announcement of the Jobs report adding 148 K jobs and dropping the unemployment rate down from 7.3% to 7.2%. However, the labor force participation rate, which gauges the proportion of the population in the labor force, was unchanged at 63.2%.

Markets started melting up on heavy volume at the opening bell and every ‘Sheeple’ was jumping in for the ride. BY 10 am green volume was heavy, but not a record breaker by any means. The DOW was lagging behind while the SP500 set new highs. Lots of opening gaps were made (bearish) as the averages push higher.

The BLS is spinning the numbers, again, and so the numbers are seemingly good at first glance until you look at the breakdown between the full-time and part-time employment figures as supplied by the BLS (below).

Another question is whether investors fear that tapering will start sooner than originally forecast and start moving assets around? Most likely Wall Street will wait until we see the total effects of the government shutdown are known and the resulting market ‘crash’ will just have farther to fall by that time.

US Somehow Adds 691K Full-Time Jobs In September

While the September Establishment Survey was a disappointing +148K, far below expectations, it was the Household Survey where the fun was.

On the top line, the gain in jobs was comparable to the Establishment number: a timid 133K. However, looking at the breakdown between Full-Time and Part-Time jobs reveals something simply hilarious.

The chart summarizes it. According to the BLS’ magic calculations, in one month, the month during which the so-called uncertainly surrounding the government shutdown hit its peak (if one listens to CEO apologists),

. . . the US work force saw the rotation of some 594K part-time workers into a whopping 691K full-time jobs, in addition to adding over 100K net new jobs in the month.

Just a few more years of unlimited open-ended quantitative money printing and we are sure this will all be fixed…

The DOW at 10:15 is at 15487 up 95 or 0.61%.

The SP500 is at 1756 up 12 or 0.67%.

SPY is at 175.62 up 1.21 or 0.69%.

The $RUT is at 1121 up 8 or 0.73%.

NASDAQ is at 3942 up 23 or 0.59%.

NASDAQ 100 is at 3380 up 19 or 0.56%.

The longer trend is up, the past months trend is bullish, the past 5 sessions have been positive and the current bias is positive.

How Oil Really Gets Priced

WTI oil is trading between 99.26 and 100.29 today. The session bias is bullish and is currently trading up at 100.29.

Brent Crude is trading between 109.56 and 110.88 today. The session bias is bullish and is currently trading up at 110.84.

Gold rose from 1310.16 earlier to 1334.10 and is currently trading up at 1333.20.

Here’s why copper has lost its indicator role

Dr. Copper is at 3.344 rising from 3.296 earlier.

The US dollar is trading between 79.85 and 79.40 and is currently trading down at 79.41, the bias is currently negative.

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Written by Gary