Non-farm payroll was like most New Years Parties - lots of hype and expectations

105K!!! 105K!!! New jobs - after the useless ADP report earlier this week, the Investment Banks and their useless linear-projection team went to work all pretty much ending with 'whisper' estimates above 500K! 

Now, the Unemployment rate came down to 9.4% on nothing but statistical flukes while the CREATION of jobs continues below the magic 250K  (needed to just keeping the economy growing) 

Unfortunately this number became a Ben Bernanke number - Manipulation and more of the same in terms of transperency looking forward. This is NOT a number which makes companies go out and hire.

It's NOT a number which confirm all the bullishness embedded in everyones forecast for 2011 - we are heading, and let me add, with ligthning speed, towards a big correction of outlooks less than 5 days into the new trading year. Not since early 2008 have I seen a bigger gap between the economic reality and the true economy - let me games begin!

I will add long FIXED INCOME to my portfolio for the first time in more than six month due to the model. Link here.  The model is so simple it makes you weep! Never the less look at prior signals and the crying should start. Markets - not data - indicates to me we are heading into considerable slow-down in growth and hence new jobs.

 

I wish you an excellent weekend with a music link - the title mimicks my view of the US: American Beauty - too bad the Beuaty is fading under Obama fascination with Chinese Planned Economy thinking.

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