Oh man, I miss this guy! Don’t get me wrong Mellisa Lee is the bomb, but when Dylan ran Fast Money, it was one hell of a show!
Take it away Dylan! Tell us what the problem is!
NFP is in and its good! The print is 117K which beats the expectations Of 85K. Added ti that the unemployment Rate Down To 9.1%.
The market liked the number and gapped up, but that strength was quickly smacked down by longs looking to exit positions on strength.
Additional numbers from the report:
Change in Non-Farm Payrolls M/M 117K vs. Exp. 85K (Prev. 18K)
Change in Private Payrolls (Jul) M/M 154K vs. Exp. 113K (Prev. 57K)
Change in Manufacturing Payrolls (Jul) M/M 24K vs. Exp. 10K (Prev. 6K)
US Average Hourly Earnings (Jul) M/M 0.4% vs. Exp. 0.2% (Prev. 0.0%)
US Unemployment Rate (Jul) M/M 9.1% vs. Exp. 9.2% (Prev. 9.2%)
I need to give some kudos here to HSM member TheShortLife who pegged this recent stock market drop like a boss!
Here is his posting to the main forum:
Imminent Market Correction for July
I’ve been looking at charts all day and have come to the conclusion that we are most likely going to experience a very large market correction next week. I’m going to first start by analyzing several indices from before the 2008 recession to present. Afterwards, I’m going to introduce some unique technical events that have happened in the last two weeks that have not happened since the recession until now.
The chart below is of the S&P 500 from April 2008 to present and it charts a 50 day moving average in red and a 100 day moving average in green. Whenever the price level breaches both the MA (50) and the MA (100), a prolonged market correction takes place. Every instance in which the price level fell below the MA (50,100) and stayed under the moving averages is highlighted in red. As can be seen, this occurred four times since the recession began with the most recent taking place from mid May to mid June. The problem this time around however is that the price level has already breached the moving averages and is below the MA (50
Read the full posting to the stock market today forum here.
Say hello to the lowers ISM number in two years!
After a brief rally in overnight trading, the dropped, wiping out that fabricated debt ceiling drama of a rally. The ISM number is bad, really bad. Every single subindex was weaker except for imports and exports. No doubt the buy side analysts will be working overtime today trying to spin some story about how positive this is, or how temporary this soft spot will be.
Some great comments from a Reuters piece:
GENE MCGILLIAN, ANALYST, TRADITION ENERGY, CONNECTICUT
“The oil market is really flailing around this morning and the initial euphoria of the debt deal seems to be waning. There’s still plenty of uncertainty surrounding the debt deal ahead of Congressional votes, and a disappointing ISM number has now taken some of the bidding out of the market.”