- Escape velocity is the speed that an object needs to be traveling to break free of a planet's gravity well and leave it without further propulsion.
- After Strong housing sales + Good Consumer spending data - US economy watchers were looking for decent jobs data to confirm the theory that US economy has attained escape velocity BUT 🙁
- As per the US Labor Department jobs report, employers in May only added 38,000 workers, the fewest since September 2010. The expectation was 160000
- The reaction: Dollar Index tanked post jobs data and Gold saw a sharp surge.
- 1 USD = 66.93 INR
- The rationale behind Gold surge: rate hike is off the table for Fed. The markets now virtually see no chance of a June rate hike and have lowered the probability of a July hike from 54% to less than 30%
- Is US economy really weak? What IF - Employment number was an outlier?
- The confusion on economy continues
- All eyes again on US Fed
- Nobody knows how long this cycle will continue
- US Fed is expected to do nothing because of another market risk event: BREXIT. The vote is on June 23 2016.
- Bad News = Good News Trend continues. Despite horrible jobs data: US equity market made a strong recovery from lows on Friday.
- One Sector did see visible disappointment: Big Banks/Financials. Banks want higher interest rates. So, post jobs data - XLF ETF saw big decline
- Another Talking Point: What's behind slow hiring? - Some are blaming long election cycle and weird political positioning of candidates
- WalMart turnaround at work right now
- How turnaround helped McDonald in last few months?
- Effective Turnaround comes with a small and solid change
- Saudi Arabia’s Public Investment Fund is investing $3.5 billion in Uber Technologies.
- Expectations are priced into markets. Surprises reprice markets. Keep thinking about next source of surprise.
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Easier to get a job in trading/quant/risk if you are a cook than economist. Economists are for networking, gov/nonprofit nonRealWorld.
— NassimNicholasTaleb (@nntaleb) May 25, 2016
She doesn't raise
She doesn't raise pic.twitter.com/ZmKobs0Umo
— Northy (@NorthmanTrader) June 6, 2016
— Rex Nutting (@RexNutting) May 25, 2016
Simplicity works. McDonald found that customers love breakfast and too many menu choices confuses them. So, small menu and All Day Breakfast
— Deepak Singh (@smarket) October 2, 2015
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers