Well, how is the "data-dependant" Fed going to spin this one?
Wow, that was one lousy BLSBS. We can start with the "disappointing" headline number of +161,000 "jobs". That alone stinks is certainly not enough "job growth" to warrant a FF rate hike next month. But then you dig into the data and it gets even worse...
- An increase of 425,000 people "not in the labor force", bringing the total to 94,600,000
- Rising wages only due to rising healthcare costs
- The Household Survey showed a LOSS of 43,000 jobs
- The Labor Force Participation Rate fell to just 62.8%
- Total manufacturing jobs fell by 9,000
And you might recall these ZH charts from last month. Well here they are updated for October. Not only is ALL of the job growth in PART-TIME jobs, people are having to work MULTIPLE jobs just to make ends meet.
And yet, the "Unemployment Rate" fell 4.9% so you can be assured that not only will Obama/Clinton be out over the weekend to tout how "strong" the US economy is, random Fed Goons will also pronounce things "robust" as the US "nears full employment". What a massive, greasy, stinky pile of garbage. Lies. All lies.
Seeing through the bullshit this morning is paper gold, which is currently UP as I type at 05. If anything, it's nice that gold isn't being driven lower ahead of next week so, if we can just hold these gains through the day and finish the week near these levels, I'll be reasonably happy.
Again, if you want something to watch as we go through the day, keep your eye on the 50-day moving averages in both metals. For the Dec16 gold, this number is almost exactly 00. In the Dec16 silver, it's .53.
And keep an eye on the stock market today. Not only is it down 8 days in a row, it will be very interesting to see how it "trades" into the close and ahead of the weekend and next week. It's also sitting right at its own 200-day moving average, as you can see below. A weekly close below there will set off all sorts of alarm bells and negative headlines as we head into next week, too.
Lastly, here's today's Eric Sprott audio: https://soundcloud.com/sprottmoney/sprott-money-news-weekly-wrap-up-11416
Have a great day and try to be of good cheer. I'm going to be out most of the day and I will TRY to get you a podcast but I'm not certain that my schedule will allow it. If anything, I'll type up something after the markets close and give you some CoT analysis that way, instead.
Keep the faith,