This morning the BLS (Bureau of Labor Statistics) reported an increase of 431,000 jobs in May. 411,000 of those jobs were temporary workers for Census 2010. Headline unemployment fell .2% to 9.7%. So only 20k jobs were created excluding the 411k census workers who will be let go over the next two months. This job report really challenges the notion that we are in a recovery, and now we'll have to consider the potential for a double dip recession occurring in the future. The jobs report coupled with the news out of Hungary, the Prime Minister of Hungary says Hungarian economy is in a "very grave situation and talk of a default is not an exaggeration", was enough to send the S&P 500 down -3.44% on the day. I recently wrote that I am not in any hurry to be buying stocks with the risks present. I believe we will test the yearly lows again, and break through that level in the coming days or weeks ahead.
Below is where I think the market is heading in the near term, the 950 level for the S&P 500 which is 10.7% lower then today's close. At those levels stocks will present a better risk / reward opportunity to hold for an extended period of time then they are today. Thank you for reading.
Below is where I think the market is heading in the near term, the 950 level for the S&P 500 which is 10.7% lower then today's close. At those levels stocks will present a better risk / reward opportunity to hold for an extended period of time then they are today. Thank you for reading.
