The ECB initiated its negative interest rate policy today, and despite a brief slump the equity market took off and set new highs, squeezing the bears. Gold and silver liked this policy, which is probably why they were beaten down further post-option expiry. Can't frighten the herd you know.
Tomorrow is Non-Farm Payrolls, and Wall St has us set up for a softball number of about 215,000 headline jobs.
Its a tough call but I would like to think that similarly to GDP if Washington has any bad news to get out they are going to do it now, rather than closer to the mid-term elections.
Mary Jo White once again denied that the market is rigged, but waved her royal hand towards those who have been calling out the blatant front running hypocrisy, and initiated a few token reforms.
Tomorrow I would watch the hours worked and the wages paid. The jobs being added are inferior, and certainly will not be supporting an increase in aggregate demand which is what this economy needs to become sustainable, without adding a substantial number captive customers in new colonies, that is.
Have a pleasant evening.
