Today we held a great Live trading session with our graduates. We together have spotted the rise in Gold price and Gold mining companies' prices because of the weak Jobs Reports! It was a disastrous report.
Yesterday I mentioned that today's ISM may be bad, and I really worry about Jobs report. Today the result is still beyond my surprise.
Non farm payroll report figure is 69,000 compared to the estimate of 151,000, a SHORTFALL of more than 50%!!! Unemployment rate increase to 8.2% compared to estimate of 8.1%. ISM report is 53.5% compared to estimate of 54%.
I would say this is a disastrous result. It smacks the FED right in the face.
That is the very reason why today GOLD price shoots straight up. I am long on symbol: "GLD" (Gold's ETF) at this point. Wall street whisper is that there might be government stimulus. Especially the FOMC meeting on 19th June. I do not know if it is a coincidence that Greece election happens to be on the 17th June.
Let us listen carefully to what Big BEN say. If he mention any hint about QE3, GOLD and Stock price will fly.
In the meantime stocks will remain volatile. More selling would likely continue in June. There may be continuous worry till the Greece election.
Article on Wall street sentiment:
My position on GLD: