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Friday, September 5, 2008

Unemployment Tops 6%

In a stunning development, the government's unemployment figures are now at 6.1%. If you follow my rule of thumb and multiply any data given by this administration by 2 to get the true figure, that means our unemployment rate is now over 12%. Now, 12% seems awfully damn high, but I spend a lot of time out in the public arena now, and I can believe it. There is a new wave of people who have just lost their jobs, their homes, and are perilously close to losing their cars. And things are probably going to get worse.

Oil is dropping again, down to 106, as traders see demand destruction coming.

The market dropped on the news, but is rallying off it's lows. The SPX has established support at 1217, resistance at 1234. This could be a tradeable range, but i have a feeling this is a good time to stay in cash.

I have only one breakout working right now, UST, and that is on a takeover rumor, so I wouldn't touch that.

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