Jobs Data Ugly But Spin Keeps Markets Flat

The Non Farm Payroll Report was down right ugly. 36,000 jobs were created in January, far lower than the 150,000 expected. While this was a poor number, the markets barely sold off. The spin came in when the Unemployment Report was released, coming in at 9.0%. This was a significant drop from the previous month. In addition, last months Non Farm Payrolls Report was revised higher.  The combination of these two, canceled out the negative new Non Farm Payrolls Report and kept the markets around the flat line.  The SPDR S&P 500 ETF (NYSE:SPY) is trading $130.72, -0.06.

The Unemployment Rate is one of the most hyped economic releases each month. However, it is one of the most false indicators of true unemployment.  When calculating the Unemployment Rate, if you worked one single day during the month you are counted as employed. If you work a part time job because that is all you can find but want to work full time, you are considered employed. If you could not find a job for months and stopped searching, you are not counted as unemployed. There are many more screwed factors that the average citizen has no idea about. The real Unemployment Rate is estimated to be about 18%.

The Dollar is advancing for the second day in a row. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $22.43, +0.08 (+0.36%). This is actually more a bounce on a short term oversold Dollar.

About Gareth Soloway 168 Articles


Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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