The article talks about how many people got new jobs, which is good news for the economy. But some experts say not to trust what they say because sometimes the stock market can go up or down even if it doesn't make sense. The article also mentions a chart that shows the stock market going down recently and how some people buy and sell stocks based on hope or fear. Read from source...
1. The article starts with a clickbait headline that tries to create fear and doubt among investors who follow the stock market permabulls. However, the author does not provide any evidence or reason for being careful listening to them. It is a vague and unsubstantiated claim that only serves to grab attention.
2. The article uses a chart of SPDR S&P 500 ETF Trust (SPX) without explaining what it represents or why it is relevant to the topic. It seems like an attempt to impress readers with technical analysis, but without proper context or interpretation, it means nothing.
3. The author blames the momo crowd for buying stocks ahead of the jobs report on hope strategy, implying that they are irrational and prone to herd behavior. However, this is a subjective judgment that does not take into account the possible reasons or motives behind their actions. It also ignores the fact that many professional investors and analysts use similar strategies to make decisions based on incoming data and events.
4. The author claims that the jobs report came much hotter than expected, without providing any sources or citations for this statement. It is unclear where he got this information from and how reliable it is. He also does not explain what constitutes a hot or cold job report, or how it affects the stock market or economy in general.
5. The author makes a sweeping generalization that most of the new jobs are at the low end such as hospitality, while ignoring the possibility that there may be other factors influencing the sectoral composition of employment growth. He also does not mention any positive aspects of this trend, such as increased consumer spending or lower unemployment rates.
6. The author states that jobs remain weak in information technology as more work shifts to remote mode, without providing any evidence or data to support this claim. It is possible that there are other factors affecting the demand for IT workers, such as skill shortages, industry trends, or geographical location. He also does not explore the implications of this phenomenon for the future of work and innovation.
Positive
Key points:
- The article reports that the jobs report came much hotter than expected, with non-farm payrolls at 303K vs 200K consensus.
- This indicates a strong economy and a large number of new jobs being created, mostly in low-end sectors such as hospitality.
- The article warns against listening to stock market permabulls who may overstate the positive implications of this data for the overall market.
- The article also mentions some geopolitical tensions in the Middle East that could pose a downside risk for the stock market.
Possible investments based on the article:
1. SPDR S&P 500 ETF Trust (SPY): This is an exchange-traded fund that tracks the performance of the S&P 500 index, which represents the benchmark stock market index in the US. The chart shows that the stock market has broken below a trendline and is vulnerable to further declines. However, the jobs report came much hotter than expected, indicating a strong economy and potential for a bounce back. This could be a long-term buy opportunity if the market stabilizes or rallies.
2. Amazon.com (AMZN): This is an online retail giant that has benefited from the e-commerce boom during the pandemic. The company is also investing in various sectors such as cloud computing, artificial intelligence, and logistics. The article does not mention any specific news or analysis on Amazon, but it could be a viable option for long-term growth given its diversified business model and dominant market position. However, the stock price may be affected by regulatory scrutiny, competition, and changing consumer preferences.
3. Penny Stocks: These are low-priced stocks that trade in the over-the-counter market or on smaller exchanges. They are typically high-risk, high-reward investments that can generate huge returns in a short period of time. However, they also carry a high risk of losing money due to fraud, manipulation, lack of liquidity, and volatile price movements. The article does not recommend any specific penny stocks, but it is possible to find some opportunities by doing your own research or using a screening tool. You should only invest in penny stocks if you are willing to accept the risk and have a clear exit strategy.
4. Binary Options: These are financial instruments that allow you to bet on the direction of an asset's price within a specified time frame. They can be traded on various assets such as stocks, commodities, currencies, and indices. The payout is usually fixed or based on a percentage of the underlying asset's price move. Binary options are highly speculative and risky, and you can lose all your money in a matter of seconds if the market moves against you. The article does not endorse binary options trading, but it is possible to find some brokers or platforms that offer this service online. You should only trade binary options if you have a high risk tolerance and a thorough understanding of the risks involved.