Another Stock Market Roller Coaster Ride

By: Anthony_Cherniawski

Good Morning!

SPX Premarket is down 30 points as I write. As you can see, the next support level is at or near 1900.00, if it holds.

The much-awaited payroll number is out. ZeroHedge writes, “The "most important and anticipated payrolls number ever", or at least since the last payroll number, is out and it is a doozy at only 173K, it is a huge miss to the 217K expected (and almost in line with LaVorgna's forecast). This was the worst monthly payrolls number since March, and the second lowest number in 19 months. However, the curious twist is that the July and June NFPs were both revised higher to 245K, making the net revision up 44K.”

A little bit for everyone here, but the reaction by the markets was immediate. Get ready for another roller coaster ride.

In a quirky twist, the TNX declined due to the sell-off in stocks and commodities searching for a haven. That may have been an expensive move for those who automatically think, “If not stocks, then bonds.”

But the jobs numbers were just “good enough” for a September rate hike. Just before the jobs report, the Fed’s Lacker explained why “the case for raising rated is still strong.”

But there are a record 94 million Americans who have dropped out of the labor force. In the past 7 years a whopping 14.9 million people have dropped out of the force while only 4 million new jobs have been created.

This doesn’t even count the Chinese weighing in over the weekend. The Shanghai market opens on Sunday night and, if they continue their efforts to stem to outflows, there may be a substantial amount of Treasuries sold, since their reserves are perilously low.

Another option is that China may be consider another devaluation of the Yan.

Regards,

Tony

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