Sat, Oct 3, 2015
Friday’s session in U.S. markets was the happiest one for our small community.
Because (our subscriptions hit through the roof, yes!) we witnessed a “miracle” in U.S. markets, where all ex-perts and anal-ysts called jobs reports “very, very ugly” and ranted about no hope for the U.S. economy, but U.S. markets turned around after a big gap down opening and laughed all the way to close at the week’s highest level! (just as we had predicted- read it here!)
Dow Jones closed at 16,472 (we had expected for 16,500) which was a recovery of nearly 500 points from its low level of the day! The index closed 200 points higher than its previous closing.
It was the biggest reversal in 4 years!
And, we were the ONLY ONES in the whole universe, who told you that there was NOTHING WRONG with the jobs reports and that U.S. markets could see a higher closing than opening levels. We wrote this right after the opening bell, when Dow Jones was trading with a loss of -250 points in early minutes of trading. Read our “historic” report here
Related Post: US Markets Today: Lower Opening, Higher Closing day?
We were certain of a positive session at that time even though the ex-perts were going hysterical with negative predictions, frothing at the mouth saying there was no hope for the U.S. economy after such “ugly” jobs reports. (that’s why we call them ex-perts; they are ex -of all things, ex-intelligence, ex-knowledge, ex-IQ etc, etc).
Here is what one such ex-pert said about Friday’s job report, and was widely reported by the world media:
“You can’t throw lipstick on this pig of a report,” said Brian Jacobsen, a portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.
Pig of a report? Really? Markets thought otherwise because barely an hour after this statement, Dow Jones started climbing up, and U.S. markets,rallied to the week’s highest level!
Here is “before” and “after” headlines about U.S. markets on Friday:
Before - U.S. job growth stumbles, raising doubts on economy
After- Wall Street ends higher in sharp turnaround
And this is our headline- before, during and after- US Markets Today: Lower Opening, Higher Closing day?
What made us rebel against the world and declare- literally challenge -that U.S. markets were going to close higher?
The same job reports, which ex-perts were tearing apart. We saw plain numbers that were better than previous numbers and ignored the experts’ estimates (who are these experts anyway? Self-proclaimed ignorant, what else!)
And this is what we saw: all numbers better than previous numbers:
And this is what the jobs numbers looked like against the estimates:
Now the question arises, why these so called ex-pert were hell bent on proving that U.S. economy was doomed and jobs reports were hellish- even though they were not?
Because they had already made up their mind that Friday’s jobs data will be horrible and it will rattle the markets.
This is a report from news agency Reuters that talks about “potential market-rattling jobs data” one day before the actual reports arrived:
“A day before September’s potentially market-rattling U.S. employment data, separate reports showed growth at U.S. factories slowed in September while weekly jobless claims pointed to a tightening labor market…”
“potentially market-rattling U.S. employment data”— How could anyone say with certainty, one day before, that the next day’s data will will be “market-rattling?
Because market-manipulators wanted to rattle markets and force the Fed’s to stay away from any rate hike.
It sound far fetched but one wonders, why Chinese markets started crashing suddenly and improved after the Fed left its rates unchanged? And just when the Fed again started talking about rate hike this year, sudden reports started emerging that the jobs situation was bad and this company and that company was making –or planning to make- so and so job cuts?
If you go back and look at “estimates” for this months jobs data, you’ll find those almost double than previous numbers. In shorts, the “estimates” were so high that any actual data would have fallen short! And then selling would have started with all the panic created by ranting and yelling ex-perts on tv channels, which did happen initially.
But then, rebels like this small (but intelligent) trader stood away from the heard, waited till the majority could see the truth of jobs reports, that the numbers were actually higher than previous numbers; and then we, the small majority of intelligent traders, started a tiny wave of support to markets which was soon joined by all. Rest, as they say, is history!
Friday brought a big defeat to market-manipulators. And a lesson for small traders; that don’t listen to ex-perts. They have their own agenda, which is as moronic as they themselves are. Use your intelligence and sit on the fence during such morons-induced volatility. Then step in when the frenzy dies, trade with the trend and rake in cool moolah.
Which we did in currency markets on Friday
Enjoy the weekend, recharge your batteries, and come back on Monday for more entertainment in markets.
Cheers to small traders; cheers to our best friend, the stock markets!
See you later.