I start to build short position, lightly with short in V and QID.
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The U.S. economy shed jobs for the fourth-straight month in April.
In post-Great Depression history, a four-month losing streak has always preceded a recession. The Labor Department told us this morning that the U.S. lost another 20,000 jobs in April. The economy has shed 260,000 jobs since the new year.
But we’ll spare you the suspense. Here’s the headline you’ll read tomorrow: U.S. Employment Report Better Than Expected. Stocks Rally on Jobs Surprise, Unemployment Down.
Indeed, economists were expecting a net loss of 75,000 jobs in April. And by some mysterious quirk of government math, the unemployment rate actually fell 0.1% from March. It’s now at 5%.
The U.S. stock market, having baked in higher job losses already, surged on the news this morning.
