The beat goes on

After a solid up day yesterday, the markets are slated to open some 100 points lower on the Dow Jones Average this morning.

This schizophrenic behavior is likely to contine for the foreseeable future as the economy teeters between a full fledged recovery and a recession that lasts and lasts. Today’s job losses totalled 467,000 and the unemployment rate climbed to 9.5%. The unemployment number was the worst number since 1983 and the job losses were worse than anticipated. This bad news pushed futures down.

Remember that unemployment is a lagging indicator - our belief is that the market is headed for a period of consolidation until the economy shows signs of improving not simply NOT worsening.

Happy 4th of July to all.

This entry was posted on Thursday, July 2nd, 2009 at 9:00 am and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.