Recommended Reading

Google Search

Charts courtesy of

Thursday, July 2, 2009

The Unemployment Roller Coaster

The trend in unemployment since January has been broken this month, as numbers came in a good deal worse than expected by everyone but me. (via Market Watch). The "official" unemployment rate is 9.5%, putting the "Samurai Trader rule of 2" number at 19%. That is depression level unemployment.

Yesterday's range got taken out pretty quickly. I went back to 888 as support, 903 as the pivot, and 918 as the upper resistance. If we can get support at 903 (we are currently at 901 but it looks like we might bounce back up), then 911 becomes the pivot point for the upper part of the range. If not , then we'll have to look for support around 897. All sectors are taking a severe pounding today, with XLE and XLY leading down, XLP and XLF declining the least. The Nasdaq is lagging a bit, but the Russell 2000 is lagging huge. Not surprisingly, treasuries are rallying, and oil and gold are both down big.

There are only 8 new highs so far, with CML making a breakout gap up, but is pulling back sharply. SNX made a big move on earnings yesterday, but didn't hit a new high until today. All the new highs appear to be struggling to keep their gains. I have no earnings on either watchlist scheduled for today.

No comments:

Google Analytics