Quick! When is the average high date for the summer rally?
My buddy up in Shawnee, OK, Robin Landry and I were pondering that on in a chat this week. His research places it around August 26th…
Not that this is a “take to the bank” number, but a couple of readers have written in that they are loading up on put options expecting things to fall apart any minute.
While that is – of course – always a possibility (the news is full of ugly possibilities which we’ll run down in a sec), sometimes even a permabear like me has to plug his nose, and be long, which our trading model has been for something like a year and a half, now with only a couple of weeks on the short side.
So we maybe will hold off for another month before laying on some “insurance bets.” The market just started Q3 and the clowns with bonuses bigger than your income didn’t buy in looking to lose.
So until we get to higher levels (Dow 17,000, S&P 2,050) barring an EMP attack or a face-off between Ukraine and Russia over Crimean real estate, I’ll have to stay long the market, but see it for what it really is:
The Federal Reserve;s Quantitative Easting is leaking into markets so their trying to gently let a little air out along the way to prevent a parabolic blow-off and a slam of hyperinflation.
In other words, it’s a detestable rally, but my money doesn’t seem to care about its lineage.
The Jobs Data
Attention Fiction Writers: Please hide the Center for Immigration Studies report that “All Employment Growth since 2000 Went to Immigrants.” Especially when we get to fresh jobs data like the federal numbers just out…
Total nonfarm payroll employment increased by 288,000 in June, and the unemployment rate declined to 6.1 percent, the U.S. Bureau of Labor Statistics reported today. Job gains were widespread, led by employment growth in professional and business services, retail trade, food services and drinking places, and health care.
Household Survey Data In June, the unemployment rate declined by 0.2 percentage point to 6.1 percent. The number of unemployed persons decreased by 325,000 to 9.5 million. Over the year, the unemployment rate and the number of unemployed persons have declined by 1.4 percentage points and 2.3 million, respectively
The labor participation rate held steady at 62.8%. Even the unemployed plus marginally attached reading dropped a bit from 12.2 to 12.1% this month.
The good news doesn’t end there (this is good news?): The monthly Challenger (Gray, and Christmas) job cut report is out with the headline:
2014 June Job Cut Report: 31,434 Cuts Lowest of the Year
After climbing to a 15-month high in May, planned job cuts announced by U.S.-based employers in June plunged 41 percent to 31,434, the lowest one-month total so far this year. Through the first half of 2014, the pace of job cutting is down 5.0 percent from a year ago, according to the report released Thursday by global outplacement consultancy Challenger, Gray & Christmas, Inc. –
All of which supports our opening headline this morning: Giddy, Up.
More after this…
The Oilman’s Reader
Why Israel needs turmoil right now? Maybe it’s to divert attention from the fact that Cyprus and Israel have signed a huge oil & gas development deal in the Leviathan field area? Which is why the West is scared spitless about ISIS making it to the coast because there may be oil and gas north of there which would put it in what the West would think of as “less than friendly territory.”
And then there’s the report on TruthDig that some mother-frackers offered locals in Pokesylvania up to $50,000 in “hush” money not to talk about groundwater pollution/ Propublica has the “Nuisance Easement” lingo online.
And there’s proof that states outright lie when they say they don’t know that fracking causes earthquakes. Take Ohio for example, please. They have known for years and years…amazing what silence money can buy, though, ain’t it?
A 9/11-Like Attack this Month?
Making the rounds from conspiracy trackers:
I have seen this Midas Muffler commercial being repeatedly shown on local T.V. (Ontario, Canada) and at the very beginning it shows the odometer reading 91179 miles, which translates to a 9/11 style attack on July 9.
Also on July 9, 23 different nations are scheduled to participate in RIMPAC naval exercises
So it’s either a) a coincidence, b) brilliant marketing of “buzz” or c) the hand of the PTB showing. We’ll have the answer next week at this time…since the date is next Wednesday…
The Government Attack on…ENGLISH!
Oh, check this one out: The federal government is suing a company because it requires employees to communicate in ENGLISH!
Right about here, Ures truly will begin selling popcorn as we’re just moments from the government beginning to swallow its own tail. Here’s why:
The FAA has a requirement that to fly in US skies pilots need to have what? English proficiency! Basic safety issue!
If the EEOC gets its way, how long before air traffic controllers will be required to be multi-lingual? And once one language gets approved, holy crap!
I can hear it now”
N7912-Lima contact Houston Center on 135.25 for English, 135.72 for Spanish, 120.6 for Danish, 125.6 for Swahili, or 128.9 for Farci.”
“12-Lima -Mon dieu! Pas de langue française?
“12-lima ein Moment, Groß 76 schweren Vertrag Fort Worth-Center auf 134,9 für Deutsch, oder 126,3 für italienische, OK?”
“Groß 76 schwer, danke und haben ein großer Tag.”
“Maintenant, 12-Lima, nous nous excusons pour cela, contactez le centre de Houston sur 123.65 pour la langue française et pour le compte de l’Adminsitration, nous apoplogize pour la journée … maintenir 7500 pieds
The government seems bound and determined to start its own civil war with the people and what better way than to use language to divide the country against itself? Why, people who can communicate might figure out who the real perps are, and can’t have that, now, can we?
Please take note: To the EEOC: About time jump on the FAA, isn’t it?