Higher unemployment is positive for stock prices - nothing else to say about it than that!
Here is the SPY chart for today from start to finish, we rally!
Past performance is not indicative of future results
We have a slew of data next week with Bernanke speaking, retail sales and of course, the above 400k print of unemployment claims. Technically though, the point of least resistance is to the upside and I don't see 1370 in the SPX being hard to take out.
As far as our inter-market relationships go, USO and the commodity sector has been a blast. Long at 35 and now short as oil halts at 98ish. The trade was to get in yesterday in anticipation of the 89-98 move being too big.
Past performance is not indicative of future results
To inter-market correlate, we have the USD/CAD and the strong move off the jobs report - buy the dollar against the Canadian as it explodes to the upside.
Past performance is not indicative of future results
And finally, we had a nice retracement in the EUR/USD as equities found their footing (did they ever) and as a result, a DOUBLE FALL LINE TRADE:
Past performance is not indicative of future results
At least if you are out of a job your investments are going up!
Happy Trading and Be Environmentally Cool
Coach Brian
Online currency trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose
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