"You know what the news is-- in a minute, you're going to hear the rest of the story"- Paul Harvey

The big news this morning was the April non-farm payroll report that showed the US economy had lost only 20,000 jobs vs. the consensus which called for a loss 70,000. The unemployment rate came in at 5.0%, while the consensus estimate called for an increase to 5.2%.

By now you should know there is much more behind the numbers than what is being reported. Its similar to the story you keep hearing about the inflation rate.

I guess if the government statistics say everything is good, who are we to question them? Its kind of like the war in the Middle East, "You are either with us, or you are with the terrorists". Pun is intended.

Welcoming the good news in the labor markets, crude oil rose by more than $3 per barrel while the US dollar rose against most foreign currencies. Huh, isn't the price of oil suppose to decline as the dollar rallies?

My guess is oil prices remain on edge as threats of a US and Israeli invasion in Iran are keeping traders on edge. Already the sales pitch to the American public has begun as national security advisor's keeping telling us Iraq is a threat.

I guess if you heard on TV that Iran was a serious threat, then it must be true.

The long and short of this is pretty simple. If Iran was a threat, and decide to launch a deadly missile toward Israel, Iran would be turned into a pile of glass after the sand melted from a massive nuke strike. They are not that stupid.

Speaking of a lack of intelligence, the financial nuke strike on the pocketbooks of many Americans is a direct result of a failed foreign and domestic policy here at home. The dollar has been destroyed, a failed energy policy and mandates for ethanol are driving food and energy prices through the roof.

How stupid would it be to start are war with Iran with oil prices hovering around $115/ barrel? Hey, why not? Just keep adding to the stupidity!

Believe it or not, I am not making this stuff up. If we really had a press that wasn't somewhat controlled, you might hear about some of this stuff too. Remember the quote from the Chief Aristocrat himself, David Rockefeller;

"We are grateful to the Washington Post, the New York Times, Time magazine, and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. ... It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during these years. But the world is now more sophisticated and prepared to march towards a world government which will never again know war but only peace and prosperity for the whole of humanity."

Oh, by the way, the Texas Department of Transportation was nice enough to build a website about the NAFTA superhighway. Here it is;

NAFTA Superhighway- Texas Department of Transportation

Technically Speaking

Baring any foreign policy blunders, the major market indexes continue to move higher as investors continue to bailout out of defensive areas like Treasuries, and are putting the money in stocks.

Yesterday we saw some rotation away from weak dollar sectors such as commodities and metals as the US dollar rallied. Today, there was some give back, but it will take some time to convince traders that an intermediate term top has been reached in the "stuff" sector.

If the trend gains momentum, we could see a fairly sharp correction in bonds as well as oil. Of course there is an election coming up, so why not? A sharp correction in crude, bonds, and commodities coupled with a dollar rally could carry the DJIA above our 13,500 target.