SCT Issue #254
This morning’s August unemployment rate shed no light forward for the Federal Reserve.
While the “headline” unemployment number dropped from 5.2% to 5.1%, nonfarm payrolls came in low at 173,000 versus 223,000 expected and private payrolls fell from an expected growth of 211,000 to only 140,000.
A clear weakening in employment for August.
I don’t think it’s what Yellen wanted to see, but then again, no one, even my cycle work, can predict whether or not the Fed will raise rates later this month. And as I’ve said all along, it really doesn’t matter in the scheme of things.
The markets are very jittery due to the stats this morning, with the dollar gaining against the euro, stocks already down overnight and seem to be losing more ground in pre-opening trade, and gold is now testing important support levels (from which a bounce should start).
Hold all positions and related stops and stay tuned.
Best wishes,
Larry
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