Home > Uncategorized > 2012/10/05: Quick Post: Courtesy MARKET ALERT: Employment Report technical trend assessment

2012/10/05: Quick Post: Courtesy MARKET ALERT: Employment Report technical trend assessment

© 2012 ROHR International, Inc. All International rights reserved.

Very short and sweet today, because all of the perspective is still much the same as expressed previous on the critical nature of an effective response to the ‘perverse’ Spanish bailout dynamic. ECB President Draghi did a great job of offsetting the potential political risks by pointing out how forcefully the European Central Bank can and will act once the European powers-that-be reach agreement.

He waxed eloquent on credit spreads, conditionality, and mostly deferred back to the political class to strike the agreements that would allow the ECB to intervene at all. A masterful job of “doing something” without really doing anything more than reconfirming previous positions. And equity markets seemed to appreciate that quite a bit, as it leaves the door open to ECB activating Outright Monetary Transactions (OMT) on all manner of far-flung justifications anytime it can specify the Monetary Policy Transmission channel is disrupted. Possibly even prior to a final agreement by the politicians.

 

And while we still feel QE3 can give equities a boost but is not actually very helpful for an ailing global economy, today’s US Employment numbers were just strong enough to further a continuation of the current equities rally. Of course, that also means classical intermarket counterpoint pressure on the primary government bond markets and US dollar. Not that we are convinced the current level of US hiring is sufficient to actually set the US and global economy on a strong growth path; more so they are not going to allow the bears to push the December S&P 500 future back below the critical near-term 1,450 area, or the more major 1,445-40 area it had slipped below temporarily on the selloff last week into early this week.

All of which is amply reviewed along with our specific technical trend views on the other asset classes in today’s TrendView MARKET ALERT. We hope you enjoy the read, and find the technical trend discussion useful insight.

It also has a link back to yesterday’s TrendView Market Alert.  That contains much more extensive background on what Signore Draghi had to say, and the key early victory for Mr. Romney in Wednesday’s US election debate. It is all about whether the US can reverse the pernicious effect of the current regime’s Taxulationism1.

Thanks for your interest.

1Taxulationism © 2010 Alan Rohrbach & Jack Bouroudjian. All international rights reserved unless explicitly waived

 Definition: Combined impact of taxation, regulation and protectionism imposed to an oppressive degree as official policy

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