The stock market stumbled today when the Labor Department's non-farm payroll report showed the economy only created 78,000 new jobs in May. The June report should be much rosie since high school and college students will be seeking employment for the summer. I've always look at the late spring, early summer jobs report as being misleading since jobs for students are temporary. So where are the real jobs? (manufacturing and textiles) Oh, they have been shipped to the cheap labor markets.
The spike in oil prices haven't help people who need real jobs either. General Motors and Ford are gearing up for "temporary" layoffs. These layoffs will not be temporary if oil prices remain high, and the "Big 2" continue their 1950's innovation mentality. To show you that innovation really works, Daimler Chrysler is building gas guzzlers that are actually selling. If GM and Ford continue their moronic approach to manufacturing, the new "Big 3" will be made up of Toyota, Honda, and Daimler. Huh, all foreign owned.
Prior to today, the stock market was knocking on the door of a five week winning streak. While the rally was unfolding, corporate insiders were sprinting to the Wall Street cash register and bailing out. The Vickers 8 Week Insider Sell/Buy Ratio stood today at 2.46, and a reading of less than 2.0 is considered bullish and over 2.5 is bearish.
Google insiders are selling millions of shares of stock, and are quitting their jobs since now they are instant millionaires. While the Google insiders are selling, brokerage firms (some of whom were fined as part of the securities fraud settlement) are falling over themselves to issue buy recommendations to people like you. Google's valuation is now higher than that of the New York Times, Tribune Company, Dow Jones, and Disney combined. Let's wait until GOOG is added to the S&P 500, and we'll begin shorting the stock.
Look for the jobs report to improve in June. The skewed reports will once again fuel opitimism.
