Will The Current Jobless Numbers Do the Market In?

The numbers are in, and they don't look good.  The official unemployment rate released last  Thursday says the United States is now sporting 9.5% unemployment.  Unfortunately that number doesn't really tell the whole story.  The same report from the Department of Labor says when factoring in the number of people who are displaced from a career but still managing to find a part time job the real unemployment numbers are actually closer to twice that at 16.5%.   Translated that means if you look around out of every 10 people you see on the street, at least 1-2 of them is jobless.  In the words of The Ladies Man... "uh yea, about that...." 

The market didn't like the news one bit with the DOW selling off 223 points.  A shocker for some, but very predictable for us and our students who have been watching this market turn developing.  This little bit of news is just one more piece of the story confirming our prediction that the overall weakness in the economy mixed with lousy government policies is about to send the markets hurtling down yet again.  We just posted a video discussion of the technical reasons why the market is preparing to sell off and today's closing price may just be the impetus needed to break this lackluster sideways movement out of it's box and get it moving again... albeit down. 

This chart shows the recent head and shoulders pattern forming on the DOW.  A break and close below our line at 8261 would signal the likely completion of the pattern and would likely trigger at least some portion of a major sell off.  

Beyond technical issues alone the fundamental data which is now being released is a nail in the coffin of this current economy.  Countries around the world are scrambling to figure out if the Dollar will hold it's value and all eyes are on the upcoming G8 summit where China will be pressing hard to sure up their investment in US Dollars with some sort of non-fiat guarantee.  

The coming uncertainty will certainly mean the loss of millions in personal retirement accounts across the country.  However the coming crash also presents some incredible money making opportunities for the educated stock investor.  During the last major swing down in October 2008 we made over 400% on our trades and many of our students did the same.  

This market uncertainty and volatility is exactly why we offer the classes we do at Trade Smart University.  It is our desire to help all of our students learn to trade the market with confidence no matter what the market conditions, and no matter how high or how low the market moves.  That's why we have decided to extend the limited time offer we set up for our Foundations of Stocks and Options class for the rest of the year. 

If you want to make sure you are prepared for the coming stock market implosion sign up to take our Foundations of Stocks and Options class for free!  The class meets twice a week for four weeks starting July 13th and will give you the perspective you need to understand where the market is moving and how you should move your money accordingly.