The U.S. Unemployment Rate rose more than expected to 9.7%, up from 9.4% in July.  The August Non-Farm Payrolls Reports showed a loss of 216,000 jobs versus the guess of 225,000.  July was revised to show an even greater loss of jobs.

Traders apparently like the report because equity markets are rallying.  U.S. stock markets were trading higher prior to the report.  The initial reaction caused the market to bend a bit before regaining its composure and rallying.  Traders are dominating the market early this morning.  Analysts are most likely still crunching the internal numbers of the report.

The September E-mini S&P appears headed toward a key retracement area at 1014.75.  There may be a reaction at this number as it represents both a 50% retracement and old bottom.  A failure in this area is likely to trigger a sharp break to the downside.

Treasury Futures are trading lower on the news.  This is mostly a reaction to the higher equity markets.  The report clearly does not signal the start of a recovery in the economy so losses may be limited.  A turnaround in the equity markets to the downside is likely to fuel a rally in today’s holiday shortened session.

The U.S. Dollar fell following the release of the report.  The move did not take place with a lot of conviction.  This indicates that the Dollar is likely to rally if equity markets begin to break.

The key is to watch the September Japanese Yen.  A lower Yen will indicate that money is flowing into the safe-haven U.S. Dollar.  

December Gold is weakening.  This is another indication that the Dollar may strengthen.  Furthermore, the report suggests that inflation will not be a factor for a while.


Contact us at:
Local: 312-896-3930
Toll Free: 1-800-971-2440

DISCLAIMER: Futures and options trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures and options may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. Prices in the underlying cash or physical markets do not necessarily move in tandem with futures and options prices. In no event should the content of this correspondence be construed as an express or implied promise, guarantee or implication by or from Brewer Futures Group, LLC, Brewer Investment Group, LLC, or their subsidiaries and affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Loss-limiting strategies such as stop loss orders may not be effective because market conditions may make it impossible to execute such orders. Likewise, strategies using combinations of options and/or futures positions such as “spread” or “straddle” trades may be just as risky as simple long and short positions. Past results are no indication of future performance.

Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.