The saying, sell in May and go away, rang true for 2012. If you did that, congratulations! you can relax.
Today is Friday, June 1st and the unemployment report for the month of May was UGLY. Only 69,000 jobs were created in May, raising the unemployment rate from 8.1% to 8.2%. The reasons for the markets melt down are not new. All of May, the markets world-wide have been under pressure because of Euro sovereign debts, China slowing and slowing growth in the US.
The unemployment report released this morning, exacerbated the already weak markets. The consensus estimate among pundits was for 150,000 jobs created. The actual number was even less than 0.5%
It will be a long summer for new college graduates looking for jobs. High school students looking to make some pocket money will be hard pressed to find jobs, as businesses are holding back hiring with market uncertainties.
There is talk the FED will intervene but after quantitative easing, QE1 (about 1 trillion freshly minted dollars injected into the financial marketplace), and QE2 (about 600 billion dollars printed) with little gain to show forth, it is doubtful but one never knows what the FED will do.
Below is the monthly chart of the S&P 500 index as of May 2012. With today's meltdown, the red moving average line will clearly indicate a sell for the market.
It will be a long hot summer. Will it?
Today is Friday, June 1st and the unemployment report for the month of May was UGLY. Only 69,000 jobs were created in May, raising the unemployment rate from 8.1% to 8.2%. The reasons for the markets melt down are not new. All of May, the markets world-wide have been under pressure because of Euro sovereign debts, China slowing and slowing growth in the US.
The unemployment report released this morning, exacerbated the already weak markets. The consensus estimate among pundits was for 150,000 jobs created. The actual number was even less than 0.5%
It will be a long summer for new college graduates looking for jobs. High school students looking to make some pocket money will be hard pressed to find jobs, as businesses are holding back hiring with market uncertainties.
There is talk the FED will intervene but after quantitative easing, QE1 (about 1 trillion freshly minted dollars injected into the financial marketplace), and QE2 (about 600 billion dollars printed) with little gain to show forth, it is doubtful but one never knows what the FED will do.
Below is the monthly chart of the S&P 500 index as of May 2012. With today's meltdown, the red moving average line will clearly indicate a sell for the market.
It will be a long hot summer. Will it?
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