The July nonfarm payroll numbers came in at 117,00 jobs added in total and the private sector added 154,000 jobs, beating the estimates of 75,000 jobs. These numbers were a much-needed positive indicator after last month’s dismal numbers, which were actually revised up to 46,000 from 18,000. But now why would such a marked improvement and positive surprise trigger another sell off. Well the market sentiment is so poor that any upward movement in the markets is sure to be met with some selling as investors try to make back some of the losses from yesterday before moving into cash. The uncertainty in Europe is still weighing on consumers’ minds not to mention the pathetic excuse for a piece of legislation passed on the debt crisis.
Read the rest at my blog The Fundamental Hedgie.