U.S. payrolls contract by 4,000 in August

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Here we go again. Up day, down day. Up day again and down days! Today’s payroll number was a big surprise as it showed contraction by 4,000 vs a 115,000 increase. While unemployment was still ok i.e. 4.6%. Manufacturing jobs declined by 46,000, the biggest drop since July 2003. Construction jobs fell by 22,000. Jobs in the services increased 60,000, as retail jobs rose 13,000. Government lost 28, 000 jobs in August. This is as interesting as it gets. Payroll shrink, but unemployment same..speculations that fed will cut rate in next meeting on Sept 18th, but Fed officials are not yet convinced that market turmoil is widespread. Lot of uncertainty and as an option trader I am loving it.

dow-sept-7-2007.pngFor Dow $13,250 is quite a good support and if it’s broken with good volumes today, chances are that it is going to Test Aug 16th close on the lower side. So watch out for Dow and I think it is going to break 13,250 today.

AAPL has been nicely co-operating with the fall (Cool $10 fall in 2 days, whatever you call this $100 credit and $200 price reduction, it’s messy). Looking forward to reap benefits today. Check out my update on BAC, the trade is up +25%. And FXI bearish play is also about to give some dividends in the market fall today. With the fall in markets IV will rise thus increasing the value on long(s).

Interesting, but monitor it closely, look for $1 ideas to buy for $0.50,

Profitable trading, OP






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