Jobs report: Creative levels of accounting gimmickry

August 8, 2016 08:22 AM

A lot of the market was good on Friday. I don’t any complaints for semis, banks, housing or transports. But there was one area that was absent. The BTK gapped up last Monday on day is own day 262 from its top and that was the high for the week. Friday was a small mostly inside day to a red candle the day before. Its only flat but you have to wonder why didn’t it go with everything else?

Of course, the VIX made a new low for the year and through last week is now lower at any time dating back to Aug. 5 of a year ago, right when the trouble started. By the way, did you catch the CNBC story Sunday that because of terrorism fears, tourism in Europe has fallen off the cliff? France alone has lost 270 million euros since late last year and round trip airfares from the United States to the UK are down about 35% from their highs in May.

Really, I take no joy in being virtually the first person to bring these things to your attention. But common sense seems to be in short supply these days. As traders we always want what the markets wants. The market is always right when you are in the trade but history has shown us irrational periods will be corrected sooner or later. Trade well, live well but please keep your eyes open.

 

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About the Author

Jeff Greenblatt is the author of Breakthrough Strategies For Predicting Any Market, editor of the Fibonacci Forecaster, director of Lucas Wave International, LLC. and a private trader for the past eight years.