Market prices don't lie; people do. The US stock market has been making higher highs now since we made our call that Employment was turning on 4/3/09 (if you'd like to see our work on the E (Employment)in the US Consumer "MEGA" squeeze call we've been making, please email ; our inflection point note was titled "This Is BIG: US Employment Is Turning")...
Given the amount of anger that my employment emails generated at the time, I knew that people were either too short and/or not allowed to agree with me. Now that the facts in this chart bear actuarial consideration, I guess the best thing to do now is cover shorts? That's not what I'm doing today. I'm selling on the proactively predictable news.
In the chart below you'll see that weekly jobless claims continue to make lower highs. Additionally, the 4 week moving average (the yellow line in the chart) continues to decline, and while it may indeed be a "head-fake", you can't make that call yet, and I'm thinking less and less Depressionistas are allowed to lever up their short positions this morning with this fact in hand.
Facts, at the end of the day, are stubborn little critters to deal with. Especially during Swine season.
Keith R. McCullough
Chief Executive Officer