Bad for anti-Trumpers that is:
Job creation smashes expectations, unemployment rate falls to 49-year low
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Job creation smashes expectations, unemployment rate falls to 49-year low
As a few of you know, I am a stock market chart analyst and though I am strongly against Trump for many valid reasons, the stock market and the economy is not one of them. I am consciously aware of the benefits that his presidency has brought to both of those, at least so far.
FYI
Below is the comment I gave today to my subscribers regarding what happened today and for the past few months:
Simply stated, the bulls won again and have made this 5 month rally into a historic one.
The fundamental picture continues to be supportive and it is the kind the bulls love, meaning it is a sustained one. There have been no big surprises on either side.
As I stated a few weeks ago, this latest rally that started in January is unique and from a chart trading perspective difficult to trade given that there have been no peaks and valleys in the fundamental picture. For example, one of the things that I was looking at the other day is that GDP under Obama showed months at 5.1% followed the very next month with a negative number. This has not happened under the trump administration, meaning that the Fed has been doing a good job and the tax cuts and deregulation seen have brought about continued growth.
The ultimate benefits and consequences of this is a completely other discussion because everything has benefits (now being felt) but also consequences (such as deregulation ultimately brought about with the mortgage crisis in 2008). At this time, there is no tangible evidence of the consequences that are to come at some point, such as the National Debt being at the highest ever and the Trade War that had not occurred since 1930. There will be consequences to these but when those consequences are to occur no one yet knows.
For now and until some of the consequences start to cause problems, the bulls are likely to continue to be in control. It does need to be mentioned that the agreement between China and the U.S. regarding the trade war is likely to be known within the next 2-4 weeks and that will be the next catalyst. Will it be a positive or negative catalyst is not yet known but the reality is that for it to be a positive catalyst, it has to be better than expected as $40+ billion has already been lost because of it and I have read that some analysts do not anticipate that the agreement will be good enough to recover what has been lost because of it and that would cause a big drop in the market.
For now and after today's action, what needs to be watched closely is when the trade agreement will be announced. That will be the next catalyst.