Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
U-Turn or Perfect Storm? Globalization at Crossroads - 22nd Oct 19
Stock Market Indexes Struggle and TRAN suggests a possible top - 22nd Oct 19
Fake Numbers Fueling the Wage War on Wealth - 22nd Oct 19
A Look at Peak Debt - 22nd Oct 19
The Coming Great Global Debt Reset - 22nd Oct 19
GamStop Became Mandatory - 22nd Oct 19
Learn to Spot Reliable Trading Setups: ANY Market, Any Market Time Frame - 21st Oct 19
How To Secure A Debt Consolidation Loan Even If You Have A Bad Credit Rating - 21st Oct 19
Kids Teepee Tent Fun from Amazon by Lavievert Review - 15% Discount! - 21st Oct 19
Stock Market Stalls: Caution Ahead - 21st Oct 19
Stock Market Crash Setup? - 21st Oct 19
More Stock Market Congestion (Distribution) - 21st Oct 19
Revisiting “Black Monday Stock Market Crash October 19 1987 - 21st Oct 19
Land Rover Discovery Sports Out of Warranty Top Money Saving Tips - 21st Oct 19
Investing lessons from the 1987 Stock Market Crash From Who Beat it - 20th Oct 19
Trade Wars: Facts And Fallacies - 20th Oct 19
The Gold Stocks Correction and What Lays Ahead - 19th Oct 19
Gold during Global Monetary Ease - 19th Oct 19
US Treasury Bonds Pause Near Resistance Before The Next Rally - 18th Oct 19
The Biggest Housing Boom in US History Has Just Begun - 18th Oct 19
British Pound Brexit Chaos GBP Trend Forecast - 18th Oct 19
Stocks Don’t Care About Trump Impeachment - 17th Oct 19
Currencies Show A Shift to Safety And Maturity – What Does It Mean? - 17th Oct 19
Stock Market Future Projected Cycles - 17th Oct 19
Weekly SPX & Gold Price Cycle Report - 17th Oct 19
What Makes United Markets Capital Different From Other Online Brokers? - 17th Oct 19
Stock Market Dow Long-term Trend Analysis - 16th Oct 19
This Is Not a Money Printing Press - 16th Oct 19
Online Casino Operator LeoVegas is Optimistic about the Future - 16th Oct 19
Stock Market Dow Elliott Wave Analysis Forecast - Video - 16th Oct 19
$100 Silver Has Come And Gone - 16th Oct 19
Stock Market Roll Over Risk to New highs in S&P 500 - 16th Oct 19
10 Best Trading Schools and Courses for Students - 16th Oct 19
Dow Stock Market Short-term Trend Analysis - 15th Oct 19
The Many Aligning Signals in Gold - 15th Oct 19
Market Action Suggests Downside in Precious Metals - 15th Oct 19
US Major Stock Market Indexes Retest Critical Price Channel Resistance - 15th Oct 19
“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools - 15th Oct 19
British Pound GBP Trend Analysis - 14th Oct 19
A Guide to Financing Your Next Car - 14th Oct 19
America's Ruling Class - Underestimating Them & Overestimating Us - 14th Oct 19
Stock Market Range Bound - 14th Oct 19
Gold, Silver Bonds - Inflation in the Offing? - 14th Oct 19
East-West Trade War: Never Take a Knife to a Gunfight - 14th Oct 19
Consider Precious Metals for Insurance First, Profit Second... - 14th Oct 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast Oct - Dec 2019 by Nadeem Walayat

Huge Job Losses Spark Stock Market Rally!

Stock-Markets / Financial Markets Dec 08, 2008 - 12:57 PM GMT

By: PaddyPowerTrader

Stock-Markets Best Financial Markets Analysis ArticleSo on Friday we had the largest number of job losses since 1974. But stocks rallied hard and bonds sold off; highly illogical as Mr Spock would say . Though exactly the same thing happened back in 1974 when stocks staged a stunning rally despite shatteringly poor economic news as investors called a bottom.

It seems that the market has taken solace from talk of the incoming President-elect Obama's pledge of the largest infrastructure spending project since the 1950's to stimulate economic growth. There's also Congressional agreement in principle with the current Bush administration on a temporary bailout of basket case automakers with a vote on Tuesday. There is talk of a car Czar to make sure the Big 3 don't misbehave (again). Nicholas II is not available due to his untimely demise so it will probably be someone like Jack Welch . Nobel winner Krugman thinks it's all a waste of time .

Today's Market Moving Stories

  • Its worth reflecting on last Fridays abysmal nuclear winter jobs numbers for a second to consider the massive revisions to the previous months figures. It turns out that the US economy shed 400k jobs in September. So even before the collapse of Lehman Brothers it was appallingly weak.
  • American mortgage delinquencies, as measured by the Mortgage Bankers Association, increased in Q3. The share of mortgages 30 days or more delinquent rose to 6.99% in Q3 from 6.41% in Q2, driven by a jump in seriously delinquent mortgages (more than 90 days late). The delinquency rate on subprime mortgages rose 136bp to 20.03%. But not surprising when you read stories like this . Bottom line is that the core problem just keeps coming back to stalk us. Xmas is cancelled.
  • With all this chat of an Obama New Deal for infrastructure, CRH is doing quiet nicely. But buying an illiquid December market on the back of a carrot not sliced, never mind cooked, can be like purchasing a solo album by the drummer from your favourite group.
  • The usually reliable German paper Handelsblatt is reporting that the German government is planning to guarantee inter-bank loans via an independent institution. The Bundesbank confirmed that a working group is drawing up preparations for such a clearing house. This is the first sensible thing any continental government has come up with! If banks start lending to each other well maybe they might then even on lend to third parties again.
  • The BIS (Bank for International Settlements) quarterly review says that the benefits for State guarantees are likely to outweigh the costs but a clear exit strategy is required. Are you listening Ireland (where there doesn't seem to be any strategy at all).
  • A Charlie Rose interview “The Black Swan” author Nassim Taleb features Taleb suggesting Dr Doom Roubini is an optimist! The whole interview is here .
  • That said there are now 2,267 companies around the globe offering profits to investors for free .

Data Today
Monday's key UK data release is producer prices data for November at 09.30. A further plunge in producers' prices will add to growing fears that the UK is heading for deflation.

From Germany we get industrial production numbers which no doubt will be dire.

Bailout Bank ATM

Disclosures = None

By The Mole

The Mole is a man in the know. I don’t trade for a living, but instead work for a well-known Irish institution, heading a desk that regularly trades over €100 million a day. I aim to provide top quality, up-to-date and relevant market news and data, so that traders can make more informed decisions”.

© 2008 Copyright PaddyPowerTrader - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

PaddyPowerTrader Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules