If Non-Farm Can’t Save Us…
Who or what can? To be fair, September estimates were clearly modest after the disappointing (although now revised) August number. So the 103,000 new jobs added last month shouldn’t impress anyone. Even if job creation continues at this rate, it won’t be enough to crack a dent in the 9.1% unemployment. This does not bode well for the US economy, nor asset prices that are correlated with it.
Although we don’t know the portfolio holdings of each school, I’m willing to bet that those who have most profitably traded and are leading this contest. Even with the pop in today, it’s very tempting to get long going into the weekend. Tough to imagine any positive news coming out over the next two days that could propel any sort of sustained rally in financials.
In currency land, I like to use EUR/JPY as a barometer of the global appetite for risk. The cross followed the “risk on” trade throughout the middle of the week before selling off today. This is another tempting (short) trade to put on before 5 pm if you believe the pop in equities over the last few days is going to be short lived.
The Wolverines face their first road game at Northwestern on Saturday. Huge test on the road for Brady Hoke’s squad. After not facing much competition so far (looking at YOU, Notre Dame), Michigan has a great opportunity to prove its #12 ranking in the AP poll.
We’ll check back with you early next week.
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