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Slowing American Job Growth

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Slowing American Job Growth

The report of slowing American job growth drove US stock prices in afterhours trading. The markets opened on Monday with losses across the board. Stocks dropped due to poorer than anticipated fundamentals. However, in technical analysis, traders commonly anticipate that the market will overshoot when there is a correction. Thus there are often profits to be made as the correction “corrects” so to speak. That was exactly the case as the NASDAQ and S&P 500 both gapped down on the opening follow the report of slowing American job growth. However, both regained part of the loss in the hour or two following the opening bell. With this snapshot of the markets in mind, just what does currently slowing American job growth mean for the stock trader?

The United States Economic Recovery

The United States economy lost nearly nine million jobs at the start of the worst recession in three quarters of a century. Unemployment has fallen steadily for a year and there has been steady job growth with 120,000 jobs being added last month. Manufacturing jobs have been steadily on the rise but the United States economy is still short about five million jobs from what employment figures were before the 2008 market crash and recession. Analysts expected the jobs report to be similar to the month before with about 200,000 new jobs being added. However, the numbers were half those expected and the market adjusted. It turns out that adding a hundred thousand jobs a months is enough to keep up with population growth. There are the numbers and there are expectations that drive optimism or pessimism in the markets. Whether you are trading the Russell 2000, trading banks, trading Toyota, or trading penny stocks, market sentiment is important as it drives prices ahead of the announcement of fundamentals. The bright spots in adding jobs last month were manufacturing, health care, professional services, and bars and restaurants.

Profits despite Slowing American Job Growth

If the trader looks only at the overall numbers he might believe that the recovery is slowing down. He might also worry about a real estate crash in China, a recession in Europe, or trouble in the Middle East. All of these “big picture” issues are of concern. However, during the last years the US government has slimmed down a bit. The folks who lose government jobs show up on the unemployment rolls. However, they are no longer costing the US tax payer any money. Considering that the size of the US debt is a major issue, the slimming down of the government is a good thing. Also, the US is getting out of Iraq and, soon, Afghanistan. The bleeding of the US treasury due to two foreign wars is about to stop. And, the United States private sector has been adding jobs steadily for two years! The point of this is that, while things may be dicey in Europe and China, they are steadily getting

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  • 1. Slowing American Job Growth
  • 2. To see a complete version of thispresentation and to obtain our free EBookfollow this link:http://portal.sliderocket.com/BLOUC/Slowing-American-Job-Growth-2Read the Forex Conspiracy Report forinsights into trading foreign currencies. Getyour copy athttp://portal.sliderocket.com/BLOUC/Slowing-American-Job-Growth-2
  • 3. The report of slowing American job growthdrove US stock prices in afterhourstrading.The markets opened on Monday withlosses across the board.Stocks dropped due to poorer thananticipated fundamentals. www.ProfitableTradingTips.com
  • 4. However, in technical analysis, traderscommonly anticipate that the marketwill overshoot when there is acorrection. www.ProfitableTradingTips.com
  • 5. Thus there are often profits to be made asthe correction “corrects” so to speak.That was exactly the case as theNASDAQ and S&P 500 both gapped downon the opening follow the report of slowingAmerican job growth. www.ProfitableTradingTips.com
  • 6. However, both regained part of the loss inthe hour or two following the opening bell.With this snapshot of the markets inmind, just what does currently slowingAmerican job growth mean for the stocktrader? www.ProfitableTradingTips.com
  • 7. The United States Economic Recovery www.ProfitableTradingTips.com
  • 8. The United States economy lost nearlynine million jobs at the start of the worstrecession in three quarters of a century. www.ProfitableTradingTips.com
  • 9. Unemployment has fallen steadily for ayear and there has been steady jobgrowth with 120,000 jobs being added lastmonth. www.ProfitableTradingTips.com
  • 10. Manufacturing jobs have been steadily onthe rise but the United States economy isstill short about five million jobs from whatemployment figures were before the 2008market crash and recession. www.ProfitableTradingTips.com
  • 11. Analysts expected the jobs report tobe similar to the month before withabout 200,000 new jobs beingadded. www.ProfitableTradingTips.com
  • 12. However, the numbers were half thoseexpected and the market adjusted. Itturns out that adding a hundredthousand jobs a months is enough tokeep up with population growth. www.ProfitableTradingTips.com
  • 13. There are the numbers and there areexpectations that drive optimism orpessimism in the markets. www.ProfitableTradingTips.com
  • 14. Whether you are trading the Russell2000, trading banks, trading Toyota, ortrading penny stocks, market sentiment isimportant as it drives prices ahead of theannouncement of fundamentals. www.ProfitableTradingTips.com
  • 15. The bright spots in adding jobs last monthwere manufacturing, healthcare, professional services, and bars andrestaurants. www.ProfitableTradingTips.com
  • 16. Profits despite Slowing American Job Growth www.ProfitableTradingTips.com
  • 17. If the trader looks only at the overallnumbers he might believe that therecovery is slowing down. www.ProfitableTradingTips.com
  • 18. He might also worry about a real estatecrash in China, a recession inEurope, or trouble in the Middle East. www.ProfitableTradingTips.com
  • 19. All of these “big picture” issues are ofconcern.However, during the last years the USgovernment has slimmed down a bit. www.ProfitableTradingTips.com
  • 20. The folks who lose government jobs showup on the unemployment rolls.However, they are no longer costing theUS tax payer any money.Considering that the size of the US debtis a major issue, the slimming down of thegovernment is a good thing. www.ProfitableTradingTips.com
  • 21. Also, the US is getting out of Iraqand, soon, Afghanistan.The bleeding of the US treasury due totwo foreign wars is about to stop.And, the United States private sector hasbeen adding jobs steadily for two years! www.ProfitableTradingTips.com
  • 22. The point of this is that, while things maybe dicey in Europe and China, they aresteadily getting better in the USA. www.ProfitableTradingTips.com
  • 23. Traders may choose to switch theirmoney over to US treasuries for securityor they may look for bargains as themarket corrects. www.ProfitableTradingTips.com
  • 24. In order to profit during times of slowingAmerican job growth or rapid expansion ofjobs, traders are wise to do theirhomework and avoid trying to outguessthe market. www.ProfitableTradingTips.com
  • 25. Technical and fundamentalanalysis, steadily applied allow withsound money management principlescommonly lead to profits. www.ProfitableTradingTips.com
  • 26. For more insights and usefulinformation regardingstock, options, commodities, andfutures trading visit
  • 27. www.ProfitableTradingTips.com