September 9, 2013
Weekly Market Outlook
By Keith Schneider
On Friday, the market opened better reacting to a lower unemployment number which dropped to 7.3 from 7.4.
However, a most sobering fact is that we also registered the lowest percentage of adults actually working since 1978. This reduced fears about the fed tapering next month and cooling off (for the moment) quickly rising rates.
Some attributed this lower number to the porn industry where many actors and film crews were laid off after a top porn star contracted HIV a few months ago. Almost 22,000 jobs were lost in the film and motion picture industry last month. We can only hope this is temporary for the economy’s sake and this industry gets back to work screwing around.
Then, after digesting the confusing jobs data, the market quickly tanked with Putin’s hawkish remarks essentially challenging Obama’s move to bomb Syria, but then recovered with NASDAQ making new 2013 highs only to close around unchanged. The S&P 500 and Russell 2000’s both tried hard to join ranks with NASDAQ’s bullish phase, but at the end of the session, simply ran out of gas. (As did most traders I imagine.) The market will begin this week equally sensitive to rumors concerning Syria, anxiously awaiting any decisiveness from the Fed regarding their bond buying policy along with any other shockers that might appear out of nowhere. My thought process is that the Fed will buy bonds aggressively this coming week, preventing a free fall from happening-of course with the usual sector rotation that this type of action yields. With Real Estate outperforming relative to the overall market’s performance last Friday along with Homebuilders, it seems I’m not the only one who detects this possibility. The predominant pattern here seems to be strong intraday rallies that fail by the end of the session. That is not a positive.
Check out this week's Video for key reference points in what is sure to be a volatile week.
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