What's it's going to take?

A huge positive surprise in the payroll numbers on Friday with only 11k jobs lost vs the expected 150K. The US is now in position to add jobs in the coming months...imagine that! So, let me ask the doubters this...do you still think this 9 month rally has been based on manipulation by Goldman Sachs/the fed? Or could it be that maybe, just maybe the market all along has been yelling and screaming that things are going to get better but few are listening? Its bizzaro year 2000 folks...I've said it so many times. The perma bears on the yahoo message boards aren't even close to capitulating and admitting even just a little bit...that the jobs report was a positive. Such clowns. Such losers.

Job growth will likely begin with fits and starts making the optimists sweat while giving bears hope. There's a bear blog called "the slope of hope" named after the adage that bear markets descend on a slope of hope. It's the bears now who are on their own slope of hope....hope that the upside economic momentum we are seeing will end soon and that any new 52 week high will be the last one.


Meanwhile gold got slammed for about $50. Fears of sooner than expected rate hikes perhaps? I've been warning about gold for at least a few weeks but I'll be honest with you, that drop felt more like a knee-jerk correction than the start of a LT trend change. Gold is certainly overbought enough to go down a lot more but if within the next 7-10 days gold suffers a correction less than about 10% and starts to consolidate then we could see a move back towards the highs or greater.

I've already read a couple of articles in the financial post that say any pullback in gold for the next month or 2 is a buying opportunity as the LT outlook is still good. When I hear people talk about a good LT outlook when the chart is showing a LT parabolic formation this tells me the days are numbered this trend. We'll see how this plays out....

ST indicators for equities are still in neutral territory but the chart is telling me that an upside breakout it imminent and tis the season for it to happen. Expect more meat griding of ST bullish and bearish traders in the week ahead.