Friday, January 04, 2008


Many financial commentators over the last few months have pointed out low unemployment/full employment as a sign that the economy is strong . Nonsense ! When unemployment is at its lowest, it only has one way to go and thats up. Today was evidence of this via date showing the highest unemployment/ jobless rate in 2 years. Be bearish when unemployment is at its lowest and bullish when its at its highest. Thats how real money is made in the market. Full employment means things can only get worse. Record unemployment means things can only get better. Thats how you interpret employment data unlike those clowns in the financial media.

On another note, I cannot help but feel we are going to get a bounce in the markets possibly via some rumors of an emergency rate cut or something along those lines. I am looking for a Dow bounce to 13200 in a week or so and the Nasdaq to close its gap at 2600 while the S&P should get up to 1445 or so. I have thus reduced short exposure such as QID SKF SRS and I may buy DDM SSO QLD in anticipation of a bounce.

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