Unemployment Rate Drops from 8.1 to 7.8!! What the Heck?

This is just crazy everyone! with September numbers coming in for the month of August at a measly 96,000 jobs and today's numbers for September at 114,000 it doesn't make sense why all of a sudden we see unemployment drop this big!

Sep 7, 2012	1.6		8.1%	8.3%	8.3%
Aug 3, 2012	1.2		8.3%	8.2%	8.2%
Jul 6, 2012	0.8		8.2%	8.2%	8.2%
Jun 1, 2012	1.8		8.2%	8.1%	8.1%
May 4, 2012	1.1		8.1%	8.2%	8.2%

Again, this doesn't add up to see such a huge unemployment change from 8.1 down to 7.8- like I've been saying since the beginning of this year (WE Are NOW seeing Major Market Manipulation from the Fed to Favor Obama's re-election,) this is the only reason this came out with just 30 days away from the Presidential election. And with QE3 already in place it makes it seem believable this wasn't planned but once the market see's through all this BS watch for a strong retracement and correction to the downside.

At the moment the AUD/USD is falling through the floor, while Cable is closely following and the EUR/USD is finally catching up to all the mess this morning.  I believe the market will rally for a bit but once it gets its fix, the correction to the downside will continue. 

Gold has taken a bit of a hit today falling back into the $1776 level but I'm still bullish on gold.  Look for this commodity to head much higher over coming days and weeks, I'm looking for a sustained move right through the 1800 resistance level and moving higher, there is no reason why not once the market corrects from this bogus news today and folks start selling the EURO heading into the Dollar and back into Gold for safety.

have a great weekend everyone, and as Perry Marshall says, "sleep with one eye open"

-david

Gbp/Usd Weekly Forex Review

This week remained bearish on our cable trade with making new lows down to 1.56 level.  We saw our best mover on May 22nd with 103 pips of movement and a total of 388 pips for the week.  Our 5 day daily average on Gbp/Usd coming in at 78pips.  Our most volatile day was Friday, Non-Farm Payroll seeing our jobs report come in at a very disappointing 69,000 jobs, expecting was around 151,000 with our previous numbers for last month at 77,000 jobs.   The market swung violently to this info and taking out the majority of shorts in the market and surprising traders with our market makers (ECB, BIS, China Central Bank, among others) likely buying into this market and moving the market with a firm move to the upside instead of the expected continuation down.

The overall outlook for the Gbp/Usd still looks very bearish and I believe we likely head down if we stay below the 200 SMA.  Even with some bounce to the upside there will more likely be continued strength to sell with a good possibility to see our 2010 lows at the 1.42 level.


ps.   On a side note the USD/JPY market looks very ripe for some good intervention from the Bank of Japan as Monday and Tuesday are UK bank holidays and there would be more bang for your buck with a thin market to do some serious intervention and it go a long way.  So we'll see what happens...

Have a great trading week!