9/3 Morningline

• Stocks gap up on job losses. Put on a happy face? (SPY, QQQQ)
• Nasdaq 100 moves to bull phase on the macd (QQQQ).
• Treasury long-term bonds drop below the 20-day moving average (TLT).
• High-yield corporate debt turns bullish on the macd (JNK).
• Crude oil shows bull phase on macd, Person's Proprietary Signal (pps) (USO).
• Gold moves to bear phase on the fast stochastic (GLD).
• Macd shows bull phase on the euro in trading against the dollar (EUR/USD).
• Dollar in macd bull phase against the yen (USD/JPY).
• Macd turns bullish on emerging markets (EEM).

Stocks and Rates

	trend	adx	psar	pps	macd	macd trend	sto	sto zone
SPY
QQQQ
VIX
TLT
JNK

So, the U.S. is still hemorrhaging jobs, and that sad news for workers is greeted by universal bullish joy on nearly all the markets except for bonds. What gives?


The fact is, jobless recoveries are good for business, because they help keep productivity high while ensuring that the Fed keeps interest rates will remain low. Productivity is defined as doing more with fewer work hours (or workers). Low interest rates means lower borrowing costs.

The bottom line: Fewer jobs? Higher profits! Let's party!!!

It also didn't hurt that the loss of 54,000 jobs was about half of what economists had expected, an incredible margin of error that even my local weather dudes would be ashamed of.

So are we celebrating a loss of jobs? Or a future return of jobs? Or both? Or neither? It's shaping up to be a very Zen sort of day.

Oil and Gold

	trend	adx	psar	pps	macd	macd trend	sto	sto zone
USO
GLD

News reports are attributing the bullishness on oil prices to this weeks fire on an offshore rig in the Gulf of Mexico.

Global

	trend	adx	psar	pps	macd	macd trend	sto	sto zone
EUR/USD
USD/JPY
EEM

Indicator Exchange-Traded Fund Symbols:
EEM - emerging markets
EUR/USD - euro/dollar currency pair
GLD - gold
JNK - high-yield corporate bonds
QQQQ - Nasdaq 100 index
SPY - S&P 500 index
TLT - Treasury long-term bonds
USD/JPY - dollar/yen currency pair
USO - crude oil
VIX - fear index


Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal.
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.