Yes, that is right four strikes and your out. Of course, that isn't how the game is usually played, but the first week of the month is always interesting to see the data we are presented with. What I am referring to are the four unemployment numbers we receive from Wednesday-Friday. We just got the Challenger report on layoffs for month of July which was higher than expected, (66.4K vs. 41.4K). Majority of layoffs were from Cisco, Borders and Merck; margins have been hurting their bottom line, jobs cuts were almost imminent. In 30 minutes, we will be receiving ADP report on private sector jobs, I expect a strike two there with either a decrease or, once again, very minimal increase. Thursday's jobless claims back above 400K (strike three), and finally Friday's unemployment report (strike four) will put the nail in the coffin. ZeroHedge has a nice post on this with a chart showing sector-by-sector layoffs (http://www.zerohedge.com/news/job-cuts-surge-59-july-highest-march-2010-hiring-intentions-plunge)
Since we are done with the debt fiasco and our congress finally grew a pair (sort of), we can not be assured, for now, that the US dollar is a safe haven play. We saw huge move in the $FAZ on decent volume to the upside, closing at the highest level since last December. I was watching the 52 level, very key if broken to more upside. We are up again in the pre, more red in S&P's = more green here.
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