Are Markets A Joke?

via GIPHY

Markets are a joke to some, certainly.

First let's start with Friday's economic data.

The always bullish financial media described them as “solid” which is the only term they know these day's as it's been adopted by Yellen. So, why not use it?

The Employment Report made for a positive headline (solid) saw jobs gain of 215K vs prior 245K. That's a reasonably good number but it pales in comparison to the prior month. The unemployment rate rose slightly to 5% vs prior 4.9%. Most significant employment was greatest in the least paying jobs: 51K (education); 48K (retail) and 40K (leisure & hospitality). Within those three sectors is where hamburger flippers and low paying part-time jobs are.

Both the PMI Manufacturing Index rose a touch to 51.5 vs prior 51.3 and ISM Mfg Index rose more sharply to 51.8 vs prior 49.5. But SouthBay forecasting shows declines in manufacturing with -12K in energy (slowing) while other manufacturing jobs declined -29K. Another inside the numbers view.

Consumer Sentiment rose slightly to 91 vs prior 90 but Construction Spending fell to -0.5% vs prior 2.1%.

It seems the 90% correlation link to stocks and crude oil are now disconnecting as crude declined nearly 4% while stocks continued to rise. It appears Saudi Arabia is only prepared to “freeze” production as long as their buddy Iran participates—fat chance.

U.S. stocks rose while the rest of the world saw stocks fall, especially in Japan.

Below is the heat map from Finviz reflecting those ETF market sectors moving higher (green) and falling (red). Dependent on the day green may mean leveraged inverse or red leveraged short.

4-1-2016 3-23-40 PM