• NFP: + 69,000 on expectations of 150,000

  • Official Unemployment rate 8.2%

  • April revised down from +115k to +77k

  • QE3 is a GO!

  • Gold soaring to $1591Live 24 hours gold chart [Kitco Inc.]

  1. ich1baN — I would be very careful about shorting any stocks (even FB) given the possibility of QE3. 

    If some type of QE3 announcement is even hinted by the Fed expect stocks to rally by 200+ points for several days straight.  You’ll quickly find yourself under water even on a FB short which is probably oversold by this point anyway.  I consider this type of trade risky and akin to gamblin’ so might as well break out the dice and head to Vegas where at least you get free alcohol. 

  2. Looks enticing, but be careful…this could be a Bull Trap.  What with the continuing unraveling in euro-land, there are likely many folks holding (paper) PM’s who have been waiting for an upwards spike to dump their stash for cash.

     

    Still sitting on the fence here…

  3. There was a post on Economic Policy Blog saying that Rule 48 is imposed today.  Rule 48 in its a simple form is the ability of the exchange to limit pricing information.  This is designed to slow pricing  data after the market open  and reduce damage  due to potential for extreme volatility that might  result from foreign trading, important ” announcements”, futures volatility and other things that could create an atmosphere of crisis. 

    Much has been said about the government and its ability and willingness to start or stop the entire market if things do not go the way that the WH or others want.  This is a small shot across the bows of the paper traders.  It may not seem like much but the market thrives on quick dissemination of quality information. 

  4. “Things are so bad they could get good very quickly.”  — Stephanie Ruhle, Bloomberg talking head speaking this morning about the odds of seeing QE3 in the wake of the NFP print.  To think, she’s one of the smarter reporters in their line-up.

    They closed the segment with her noting, “At least it’s National Doughnut Day.”  Now there’s a true American holiday…

  5. CNBS-ING

    Some Of The BS Heard Right After The Number Came Out:

    “This is Bad For The Whitehouse—One Man Who Is Happy Is Romney”<—Gimme a Break–No One Is “Happy” About This Economy Jerks!

    “How Are They Going To Spin This?”

    Labor Secretary: This Was An Unusually Bad Month”,
    “We Need Congress To Do More”,
    “We Need More Cooperation From The Other Side Of The Isle” ,
    “The Numbers are not acceptable, but going forward, we should see growth”

    Cramer: “Faceplant has come off it’s lows now—up 20 cents from the bottom”

    “Groupon looks compelling”
     

  6. Hear it is AG:

    Breaking: NYSE Invokes Rule 48

    With indications that the Dow will open more than 170 points lower, the NYSE has invoked Rule 48.
    Specifically, the NYSE and NYSE MKT cash equities exchanges will invoke Rule 48 for this morning’s opening. Mandatory opening indications are therefore not required. Overview of Rule 48:.
    Rule 48 provides the Exchange with the ability to suspend the requirement to disseminate price indications and obtain Floor Official approval prior to the opening when extremely high market-wide volatility could cause Floor-wide delays in opening of securities on the Exchange.
    Rule 48 is intended to be invoked only in those situations where the potential for extreme market volatility would likely impair Floor-wide operations at the Exchange by impeding the fair and orderly opening of securities. Accordingly, the rule sets forth a number of factors to be considered before declaring such a condition, including:
    Volatility during the previous day’s trading session;
    Trading in foreign markets before the open;
    Substantial activity in the futures market before the open;
    The volume of pre-opening indications of interest;
    Evidence of pre-opening significant order imbalances across the market;
    Government announcements;
    News and corporate events; and,
    Any such other market conditions that could impact Floor-wide trading conditions.
  7. So I’ve been following silver since 2004 and have noticed on days like today with gold making a +$50 move to the upside that a year or two ago silver would be up over a $1 easily and it is around +.90.  The moves in silver to the upside have gotten smaller over the past year, yet good to see going up today.

  8. Don’t forget Gold and Silver (in addition to a safe haven) are moving on the China and Japan bilateral currency trade move away from the dollar. I think that is something the LameStream Media ™ is missing. 

    It is finally a bold inflection point that shows the dollar is no longer needed in a world of chaos where people will seek the safest asset, naturally Mr YellowBird and Mr. SilverBird.

  9. If You Add Today’s Number To Last Month’s Revision together—you still will not get today’s consensus number of 150,000. Unreal!

    Labor Secretary said that the move of the headline 8.1% number to 8.2% is a sign that more people are participating in the job market—so they are “more confident” in the US economy”—HAHAHA!—We pay this moron to say these things!

    Construction lost about 28,000 jobs—They Lost More!—There’s hardly any construction workers left to lose! Factoring in those discouraged adults and others working part time for
    lack of full time opportunities, the unemployment rate is about 14.8
    percent
    .  Adding college graduates in low skill positions, like
    counterwork at Starbucks, and the unemployment rate is likely closer to
    18 percent. 
    The economy must add 13 million jobs over the next three years—362,000 each month—to bring unemployment down to 6 percent.

    CNBS—”There’s No Place To Put Your Money”—HAHAHA!

     

  10. @powerball

    Thanks for the advice but I am an experienced trader. QE3 won’t come into play here as the Fed is extremely tepid to announce anything. If and when they do, it will be sometime in late June or early July. The markets in my opinion would have to dip well below 12,000 in order for them to really think about announcing anything. 
    I understand the risks and FB is already well overvalued even at 29 a share. It’s base case price should be around 20 a share and that is in an up market. In a down market, they should be trading around 30-50 times earnings….. The valuations that have been given to a company such as FB are completely atrocious and anyone to suggest that they are justified at this price is a complete lemming. It doesn’t pay a dividend, Europe is in a sham hole of a mess, Japan and China just ditched the dollar for bilateral trade, US prospects are abysmal, and to top it off FB doesn’t pay a dividend so it offers no real capital preservation. 
    Oh and I just found out that 40% of FB accounts are from advertising scammers and the only country they an see truly massive growth in banned them.
  11. Thanks for putting up the Rule 48 427.  It may be indicative of little or nothing but when these types of situations crop up and rattle the markets it is a small indicator of coming events. 

  12. Glad to AG;

    Every rattle is important thats why I like Doc’s site. A free flow of info relavent or not then the reader decides, or connects all the dots.
    2oz The edit button is not full in running, I have only seen it on a few of my post
  13. Jake mentioned “Construction lost about 28,000 jobs—They Lost More!—There’s hardly any construction workers left to lose!

    (Aside from all the illegals who are working Construction while being paid ‘under the table.’)

    But to back up the dearth in Construction employment – albeit anecdotal evidence – when I asked a contractor how his business was going, he told me all of his customers that produce cement & concrete, are barely hanging on.

  14. Mammoth: I Rarely Mention Stocks But Look At This Home Builder:

    TOLL BROTHERS HOME BUILDER

    It’s Very Hard To Get A Loan These Days Too…These Banksters Know What’s Going On. They Don’t Like Financing A Depreciating Asset. So They Put You Through Hoops To Get A Loan–Asking You To Verify Years Of Income—Etc. No Liar Loans Today

  15. LMAO Boy it’s great to see everybody smiling again when the spot price goes up and it shows in the posts. Well forget the spot price if your a stacker like me and get prepared the spot price will take care of it’s self, watch what’s happening elsewhere and thanks Jake for keeping me updated on what’s happening in this crazy world right now, I’ve learned a lot from you and some other folks on here.

    Also QE3 will take care of it’s self also but it won’t do any good. I’m watching the Derivatives Market and waiting for the Interest Rate hikes because then I know the shit that’s gonna happen will be VERY CLOSE.  KEEP STACKING It’s Getting Scary Folks.

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