Friday, October 3, 2014

Feds Helping Out The Market Again! Is this Hype........Looks like Russel and FSTE is in a Correction.

(WASHINGTON POST) — U.S. employers added 248,000 jobs in September, a burst of hiring that helped drive down the unemployment rate to 5.9 percent, the lowest since July 2008.  The Labor Department report Friday also showed that employers added 69,000 more jobs in July and August than the government had previously estimated.  The rate fell from 6.1 percent in August and is now close to 5.5 percent, which many economists consider a healthy level.  That could ratchet up pressure on the Federal Reserve to raise its benchmark interest rate earlier than it plans. Most economists have predicted that the Fed will do so in mid-2015.  The improved figures come after President Barack Obama touted his administration’s economic achievements in a speech Thursday. The economy is the top issue in voters’ minds as the November elections near.  The number of unemployed fell in September by 329,000 to 9.3 million. Most of them found jobs last month. But nearly 100,000 stopped looking for work.  

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(CERR INVESTMENTS) - Isn't it interesting the Feds have revised unemployment up from last month now, exactly when the markets were declining, right before an election cycle. I still say the Feds and Big Investors are working together to influence  the markets.  Most of the jobs (according to the Washington Post) were created last month. Lets think about what is happening here. People are getting ready for Christmas. These are temporary jobs. Also, most investors knew about these jobs numbers on Thursday. Why the big rise of the Markets on Friday?  What happens when QE3 ends next month?  I bet the news people like (Squawk) will be talking about this 24-7.  Right now the key word is still "Ebola".  A news commentator goes to Liberia and has no physical contact. No one really knows how this thing is spread.  I pray but in 4 to 21 days we will know if things are okay.  
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(YAHOO Finance) - Scary October start for stocks; Russell in correction.  U.S. stocks declined sharply on Wednesday, with the fourth quarter starting off on a dour note after the S&P 500's seventh quarterly gain, as investors fretted global concerns, mixed U.S. economic data and earnings ahead.  2011 as investors sought safety in U.S. Treasury bonds and gold,with the CBOE Volatility Index (^VIX), a measure of investor uncertainty, rising. The Russell 2000 (^RUT) fell into correction territory, down 10 percent from its July record.  "In the here and now, there are too many global-macro concerns for investors to have confidence," said Art Hogan, chief market strategist at Wunderlich Securities, listing worries about ISIS, Ukraine and Russia, the slowdown in China "and Ebola, which is causing things like airline stocks to go down."    While often a scary month, this October has an especially long list of demons for markets to contend with-from the major shift in U.S. monetary policy and a global economic slowdown to a host of percolating geopolitical hazards, from Kiev to Hong Kong to Brasilia.  Markets enter the month on a wave of heightened volatility, and are already showing signs of being spooked by the Fed and concerns about European and Chinese growth.This week alone, there is a European Central Bank meeting Thursday, where it is expected to detail its asset-backed purchase program, coming just as the Fed is stepping back. There is also the September employment report Friday, a key data point for the Fed, and there are general elections in Brazil over the weekend.
"October is historically a turnaround month, where the markets tend to turn around after weakness but often the weakness carries on into October. Maybe, we have to get to the middle of the month-until we get some Chinese data and then we turn around. We think stocks are probably headed higher from here to year end," said Jeff Kleintop, senior vice president and chief global investment strategist at Charles Schwab.  October is a critical turning point for Fed policy and in a highly choreographed wind down, the Fed Oct. 29 is expected to announce it is finishing its quantitative easing-the controversial bond buying program that many strategists say has added liquidity and helped provide a strong backdrop for stock market gains.  The Fed then begins a slow walk toward its first rate hike sometime next year, so each piece of economic data is even more important than usual since that is what is guiding the Fed's hand.    The dollar has also risen, while Treasury yields have stayed relatively low, amid a quarter rife with geopolitical events-any one of which could impact markets. The sanctions against Russia for its actions against Ukraine continue to be a worry for the weakened European economy.   "There are a lot of things that are happening around the world right now that don't add up to a macro story, but do run some risks of turning into something under certain circumstances," Kasman said.  The dollar strength is expected to continue, and it could be a headwind for some markets in the fourth quarter. Strategists point to oil, with Brent down 15 percent in the third quarter, and gold, down more than 8 percent. October kicks off Wednesday with a series of other important reports, including ISM manufacturing data, construction spending, ADP (ADP) private payroll data, and September auto sales.

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(CERR INVESTMENTS) - I really think geopolitical challengers will definitely be at the fore front of market concerns this month.  People are looking for something to happen, a change in the investment environment.  For now we have to look forward to is QE3 ending.  Yes the markets are going up today 10/3/2014 but is anything being directed at the average citizen?  Who is really buying this market?  Things are more the same, keep interest rates as low as possible, don't really tell people exactly when you end QE3, don't really tell you when they will raise interest rates....Who has more patience?  I think we have underlining things happen that causes today to be market hype.  Until wages and employment (government jobs, high wage, private sector- not just services), things are gong to be on a pause. Until you get the average citizen buying goods and services again and their bank accounts begin to rise again, things will be stagnant.  If things were good people would be retiring now and enjoying the good life. Do you see people over 60 leaving their jobs in drove.