By John Galt
October 7, 2011 – 05:30 ET
With Europe temporarily off of the front pages, that leaves their banksters alone to commit Eurocide and allow the markets to focus on the U.S. non-farm payrolls report. As the S&P 500 slammed into a short term resistance area around 1164-1165 yesterday, I figure a spike towards the 1180ish 50 DMA might occur if the NFP shocks everyone or provide the markets an excuse to take profits and resume selling should the number disappoint.
The consensus is as follows:
Wall Street Journal survey: +30K to +115K
Bloomberg survey: -50K to +115K
Thus leaving my careful, scientific analysis based on the news, hairball patterns from my cats, and the drunken dartboard toss.
Today’s NFP will come in +42K with the unemployment rate ticking up to 9.2% because the Obama regime needs an excuse to pressure the Republicrats into passing some sort of jobs bill so they are all insured of getting more graft, er, campaign money from the recipients of those funds. With Christmas hiring starting to accelerate the largest increase will be in the part time area of the economy and some zipperheads will appear on television proclaiming that this means the economy is starting to grow again.
Look for the action in the markets to be choppy but finish the day to the downside as at 3 p.m. it is about time for the latest Euro facts, not rumors, to emerge. Perhaps the traders will find out that Dexia trading is still suspended and will wipe out billions of Euros and that other European financial institutions are equally as poorly capitalized if not insolvent.
Truth is a terrible thing and so is the timing of all these crises coinciding in the next three weeks to come. Too bad the central banksters are running out of cans to kick down the road.