Like many others I was waiting and watching the futures “market” with total incredulity as we awaited for what was sure to be one of the worst payroll reports in history. As we awaited the “markets” rose, and rose, and rose higher the entirety of the overnight session into the actual report.
Then, once the report was released, not only was it the worst ever recorded, but (and it’s a very big but!) the “markets” rose even higher, and are still at those highs as I type this. On a side note: Now you know why I’ve used the term “markets” (e.g. with quotation marks) for years to the screams and howls of the so-called “smart crowd.” Today signifies de facto why it fit so perfectly.
So it is with that context I want to post a line via an article over at ZeroHedge™ that pretty much sums up everything. To wit:
While economic fundamentals ceased to matter about a month ago when the Fed went nuclear and not only injected trillions in the bond and repo market, but also directly backstopped the corporate bond market (with many expecting it will do the same in equities), there is something utterly surreal and terrifying watching futures equity surge just as the US reports its worst jobs report in history, which it did moments ago when the BLS reported that in April, the US lost a record 20.5 million jobs, (not quite as bad as the 22 million expected but at this level what does it matter) the biggest drop in history, and 10x more than the 2 million jobs lost at the peak of the Great Depression.~ZeroHedge
And that dear readers is why I knew I had to change my focus, as I said before: Only fools would try to give rationale (i.e., great earnings, great P/E ratios, blah, blah, blah) for the “markets” doing this, that, or anything other. So I leave that task to the buzzer-banger and the rest of the mainstream financial/business media. Because they seem to be doing a bang up job of proving my point.
© 2020 Mark St.Cyr