http://profitabletradingtips.com/trading-investing/slowing-american-job-growth
Slowing American Job Growth
The report of slowing American job growth drove US stock prices in afterhours trading. The markets opened on Monday with losses across the board. Stocks dropped due to poorer than anticipated fundamentals. However, in technical analysis, traders commonly anticipate that the market will overshoot when there is a correction. Thus there are often profits to be made as the correction “corrects” so to speak. That was exactly the case as the NASDAQ and S&P 500 both gapped down on the opening follow the report of slowing American job growth. However, both regained part of the loss in the hour or two following the opening bell. With this snapshot of the markets in mind, just what does currently slowing American job growth mean for the stock trader?
The United States Economic Recovery
The United States economy lost nearly nine million jobs at the start of the worst recession in three quarters of a century. Unemployment has fallen steadily for a year and there has been steady job growth with 120,000 jobs being added last month. Manufacturing jobs have been steadily on the rise but the United States economy is still short about five million jobs from what employment figures were before the 2008 market crash and recession. Analysts expected the jobs report to be similar to the month before with about 200,000 new jobs being added. However, the numbers were half those expected and the market adjusted. It turns out that adding a hundred thousand jobs a months is enough to keep up with population growth. There are the numbers and there are expectations that drive optimism or pessimism in the markets. Whether you are trading the Russell 2000, trading banks, trading Toyota, or trading penny stocks, market sentiment is important as it drives prices ahead of the announcement of fundamentals. The bright spots in adding jobs last month were manufacturing, health care, professional services, and bars and restaurants.
Profits despite Slowing American Job Growth
If the trader looks only at the overall numbers he might believe that the recovery is slowing down. He might also worry about a real estate crash in China, a recession in Europe, or trouble in the Middle East. All of these “big picture” issues are of concern. However, during the last years the US government has slimmed down a bit. The folks who lose government jobs show up on the unemployment rolls. However, they are no longer costing the US tax payer any money. Considering that the size of the US debt is a major issue, the slimming down of the government is a good thing. Also, the US is getting out of Iraq and, soon, Afghanistan. The bleeding of the US treasury due to two foreign wars is about to stop. And, the United States private sector has been adding jobs steadily for two years! The point of this is that, while things may be dicey in Europe and China, they are steadily getting
2. To see a complete version of this
presentation and to obtain our free EBook
follow this link:
http://portal.sliderocket.com/BLOUC/Slowin
g-American-Job-Growth-2
Read the Forex Conspiracy Report for
insights into trading foreign currencies. Get
your copy at
http://portal.sliderocket.com/BLOUC/Slowin
g-American-Job-Growth-2
3. The report of slowing American job growth
drove US stock prices in afterhours
trading.
The markets opened on Monday with
losses across the board.
Stocks dropped due to poorer than
anticipated fundamentals.
www.ProfitableTradingTips.com
4. However, in technical analysis, traders
commonly anticipate that the market
will overshoot when there is a
correction.
www.ProfitableTradingTips.com
5. Thus there are often profits to be made as
the correction “corrects” so to speak.
That was exactly the case as the
NASDAQ and S&P 500 both gapped down
on the opening follow the report of slowing
American job growth.
www.ProfitableTradingTips.com
6. However, both regained part of the loss in
the hour or two following the opening bell.
With this snapshot of the markets in
mind, just what does currently slowing
American job growth mean for the stock
trader?
www.ProfitableTradingTips.com
8. The United States economy lost nearly
nine million jobs at the start of the worst
recession in three quarters of a century.
www.ProfitableTradingTips.com
9. Unemployment has fallen steadily for a
year and there has been steady job
growth with 120,000 jobs being added last
month.
www.ProfitableTradingTips.com
10. Manufacturing jobs have been steadily on
the rise but the United States economy is
still short about five million jobs from what
employment figures were before the 2008
market crash and recession.
www.ProfitableTradingTips.com
11. Analysts expected the jobs report to
be similar to the month before with
about 200,000 new jobs being
added.
www.ProfitableTradingTips.com
12. However, the numbers were half those
expected and the market adjusted. It
turns out that adding a hundred
thousand jobs a months is enough to
keep up with population growth.
www.ProfitableTradingTips.com
13. There are the numbers and there are
expectations that drive optimism or
pessimism in the markets.
www.ProfitableTradingTips.com
14. Whether you are trading the Russell
2000, trading banks, trading Toyota, or
trading penny stocks, market sentiment is
important as it drives prices ahead of the
announcement of fundamentals.
www.ProfitableTradingTips.com
15. The bright spots in adding jobs last month
were manufacturing, health
care, professional services, and bars and
restaurants.
www.ProfitableTradingTips.com
17. If the trader looks only at the overall
numbers he might believe that the
recovery is slowing down.
www.ProfitableTradingTips.com
18. He might also worry about a real estate
crash in China, a recession in
Europe, or trouble in the Middle East.
www.ProfitableTradingTips.com
19. All of these “big picture” issues are of
concern.
However, during the last years the US
government has slimmed down a bit.
www.ProfitableTradingTips.com
20. The folks who lose government jobs show
up on the unemployment rolls.
However, they are no longer costing the
US tax payer any money.
Considering that the size of the US debt
is a major issue, the slimming down of the
government is a good thing.
www.ProfitableTradingTips.com
21. Also, the US is getting out of Iraq
and, soon, Afghanistan.
The bleeding of the US treasury due to
two foreign wars is about to stop.
And, the United States private sector has
been adding jobs steadily for two years!
www.ProfitableTradingTips.com
22. The point of this is that, while things may
be dicey in Europe and China, they are
steadily getting better in the USA.
www.ProfitableTradingTips.com
23. Traders may choose to switch their
money over to US treasuries for security
or they may look for bargains as the
market corrects.
www.ProfitableTradingTips.com
24. In order to profit during times of slowing
American job growth or rapid expansion of
jobs, traders are wise to do their
homework and avoid trying to outguess
the market.
www.ProfitableTradingTips.com
25. Technical and fundamental
analysis, steadily applied allow with
sound money management principles
commonly lead to profits.
www.ProfitableTradingTips.com
26. For more insights and useful
information regarding
stock, options, commodities, and
futures trading visit
