By Dave Fry, founder and publisher of
and author of the best-selling book
March 5, 2010
EMPLOYMENT DATA SURPRISE?
Friday's unemployment data was better than expected and fooled most forecasters. The set-up all week was spun by Larry Summers who indicated during the week the data would be disappointing due to snow and overall poor weather conditions. This helped bulls pump prices Friday and given previous late-day rallies this week others must have been in the know. Good job Larry!
Consumer Credit also expanded as nonrevolving debt expanded sharply caused by autos, boats and student loans for example. Revolving debt continues to shrink as credit card debt may be maxed-out.
Volume was light for all the bullish action which remains a sticking point for many. Breadth was quite positive per the WSJ data below.
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Markets rallied sharply on employment data which beat expectations. Not mentioned is, excluding seasonal adjustments (those who've given up looking for work), the unemployment rate is 16.3%--close to a record high. But, no one likes a party pooper today.
The only flies in the ointment are high PEs and short-term overbought conditions which most don't seem interested in currently.
Let's see what happens. You can follow our pithy comments on
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Dave Fry is founder and publisher of
, Dave's Daily blog and the best-selling book author of
, published by Wiley Finance in 2008. A detailed bio is here: