Thursday, October 07, 2010

Market comments for Oct. 7th

Initial Jobless Claims were down 11,000 to 445K Claims for the week of Oct. 2nd. Expectations were for 450K. Continuing Claims were at 4.462 Million vs. an expectation of 4.450 Million. So the numbers were basically in line with what folks expected and basically unchanged for the past several months at this level of around 450K. This, while not good made the market Futures jump because it wasn't worse. That's a sad state of affairs isn't it.

Everyone waits now for tomorrow's Unemployment rate for SEPT. Will the number be the same and stay at 9.7% or will it tick up to 9.8%? Will this number drive the markets up or down? Give me a break. It isn't good for sure, and one I know would ask, "But is it Bad?" There is no real difference in the numbers, unless you are one of those unemployed. It is bad for America.

Two year notes hit a record low and 10 year Treasuries are now yielding 2.39%. The dollar continues to drop while many work today to make some dollars, even though their purchasing power is less today than yesterday. Gold hit another new high today at $1360/ounce.

European markets are up as are Dow and S&P Futures. We should cross over 11,000 today and are now closer to the 11,200 market top I had predicted back on Sept 21st. This rise in the market is confounding many, who don't understand the relationship of stock market assets in equities and the drop in the dollar and the rise in Gold. There is no real net change in the purchasing power, but it makes people feel better. That's the play right now. Hard assets like commodities are rising because no one wants to hold paper, except those in retirement who are finding it more difficult to survive.

I do eventually see Home prices will rise as these are also hard assets and the price of these assets will have to gain and prices rise before foreign buyers invade us to buy Commercial jewels across the U.S.

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