Any unemployment claims below 450k signals growth in the job sector.
Today’s reading is very bullish as this is the second time the unemployment claims fell below 450k. And now analysts will project future unemployment claims below 450k.
Stocks should take into account this new projection. Growth rates will increase slightly, 50 basis points, and that will allow another 1 to 2% rally.
The sentiment has changed so fast. Looking at the poll, many have changed to BULLS, the BEARS have decreased significantly.
Is this a sign that we are reaching a top? I don’t know and don’t want to bet on a peak. But I think this rally is steaming hot.
Guess the trade now is “DON’t FIGHT the FED!”
Better job market means….
Good for the BANKS…. Good for SERVICE and RETAILS and virtually almost everything else.
I might sound so upbeat suddenly, after weeks of waiting for the correction… but I think am giving up this correction thought. I am still prepared for it, but I don’t think it will be a meaningful correction.
We might see a rally all the way till March 2011. And stocks usually rally after the new congress is formalized .. that’s JAN 2011.
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