Despite Dismal Jobs Report, "This" Is What Just Sent Equities Higher

Tyler Durden's picture

Ugly jobs report in which not even the spin brigade could find anything to cheer, after even the BLS said the atrocious December print was not due to the weather when it did not revise the December number? No worries: here is what the market is using as a goalseeked justification to send the futures off its post report plunge lows to a level higher than where it was before the report. See if you can spot it:

That's right - after years of ignoring the impact of the labor force participation rate, suddenly the market trading algos are so concerned about LFP they took the "surge" from the 35 year lows of 62.8% to 63.0% as the all clear signal that they can ignore all the other data in the NFP report and buy.

Another way of seeing this, is the number of people not in the labor force, which declined from an all time record 91,808 to 91,455 - just below the second highest ever.

Of course, both these trends will revert to their historic deteriorating progression, but for now it is all about finding the narrative that allows the market to explain why someone just reactivated the USDJPY 102 tractor beam which is sending everything soaring.


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Levadiakos's picture

The "surge" in the LFP rate is surely weather related. How did Mark zandi miss this? Because he is no more than a carnival barker.

TruthInSunshine's picture

Mark Zandi, Steve Liesman, Brian Wesbury & Barry "Butterbean" Ritholtz will be cnBS to explain how & why these numbers are actually a reflection of a robustly growing economy in 5...4....3...

Embrace the fraud.

Sean7k's picture

The central banks just dumped huge amounts into equities. See the movement in european markets. The PPT is alive and well.

GetZeeGold's picture




We shall go on to the end, we shall pump in France,
we shall pump on the seas and oceans,
we shall pump with growing confidence and growing strength in the air, we shall defend our market, whatever the cost may be,
we shall pump on the beaches,
we shall pump on the landing grounds,
we shall pump in the fields and in the streets,
we shall pump in the hills;
we shall never surrender...

Vampyroteuthis infernalis's picture

Since when did the markets care about real people on the streets? Markets are going up on dead cat bounce over the next few weeks. Bank on it!

bigkahuna's picture

pump pump pump - get it get it

Cult_of_Reason's picture

They hit USD/TRY and VIX down, and the correlation algos went nuts buying everything.

IMHO. The ramp has nothing to do with LFP.

SAT 800's picture

Well, the important thing is the stock market is nice and high again; so everything must be normal and good and I can go back t o sleep.

Headbanger's picture

Looks like the PPT is going full blast with the futures pre-market now.

But how the hell can anybody expect equities to not sell off with shitty jobs numbers saying the ship is sinking fast!?

drendebe10's picture

Nah, the ship not be sinking. Just ask prez fudgepacker and he'll tell u everyting be hunky dory so he be going to play golf.

Rainman's picture

LOL...353 long term unemployed found a job....and bullish !

LawsofPhysics's picture

Bullshit, drop a few of those "1%-ers" in south central if you want to see them get "pummeled" motherfucker.

Nick Jihad's picture

Speaking of bullshit, I live in south-central Los Angeles. You appear to have obtained your knowledge of it, from hip-hop music videos. Suggest you use Detroit, Baltimore or Philly, to avoid sounding silly.

The Dunce's picture

LFP is rising?  Good news, indeed.  More foodstamps for me, bitches.

Silverhog's picture

Gold should have had a $25 pop. Maybe Blythe's new desk is on the 30th floor by a window. 

Levadiakos's picture

Carmer is bullish on the number? Wow! BUY BUY BUY. He's been preparing the weather excuse for weeks

jbvtme's picture

"blight" the reptile. look at those shapeshifting eyes...

depression's picture

FOWARD Komrads !

RebelDevil's picture

But then what drives the JPYUSD rate?

Dr. Engali's picture

The carry trade is what sets that rate. Traders borrow in Yen at 0% then convert them to dollars to buy bonds here and book the spread. As long as the exchange rate remains stable it's an easy trade.

Temporalist's picture

ZH/Tylers please just make a common thread section titled "Missed It By That Much"

Jahbulon's picture

Wow!  This is just odd......

Dr. Engali's picture

Everything is bullish. BTFD.

jtz5's picture

No way...are you just picking any # that is going up and saying that is the new correlation as to why the market is going up?  Enough already.  TPTB want the market higher, that's it.

rsnoble's picture

Didn't take long to get back to bad news is good news or doesn't matter.

orangedrinkandchips's picture

companies and the Fed HATE....ABHOR declines.....bear markets, shorts....are like vermin. 


It's more than obvious where we are headed but when AAPLs main concern is BUYING BACK SHARES TO SQUEEZE SHORTS....



firstdivision's picture

Someone needs to inform the algos that there has been no extenstion to the extended ue benifits, so expect retail sales to continue their slide.

DebtSlaveZombie's picture

HAHAHAHAHA!!! This market is a joke isnt it??  How can anyone seriously trade this market and not be on five different types of medication and not have a drinking problem and coke habit.  Unreal. 

disabledvet's picture

again...if that price of gold collapses then you'll really start to see some "fireworks."

Nutflush60's picture

I think intraday trading is OK. You are nuts though to be very long overnight, with China ready to implode at anytime.

Nick Jihad's picture

That makes sense, but it's odd that you don't see evidence that traders are cashing out their positions at the end of the session. Indeed, the traditional "3:30 ramp into the close" suggests that somebody out there is doing just that - paying a premium to be long overnight.

Nutflush60's picture

Wow, futures at day high. Made some money pre-hours buying XIV on the dip, but left a lot on the table.

The amount of complacency on CNBC remains stunning. David Faber is the only non-cheerleader left.

Aknownymouse's picture

I think reason for ramp is taper off hope

Oldwood's picture

I think the reason for the ramp is that is how they make money...big money. BTFD, buy before you miss out and when its going down, cut their throats. Makin money is all it is. I would assume for the markets to go up, someone must be buying...who? Big players with deep pockets that can seek out anything the claim to be a buying opportunity and then proceed to buy and push prices up, hoping to suck the muppets in, as always relying on their greed to over ride their rationality. They can turn around and do the opposite, touting something negative (which is never hard to do) and start selling, watching prices fall after they initiate the avalanche, only to become the buyer of last resort. When you hold most of the cards and own the casino, how can you possibly lose?

101 years and counting's picture

i figured it was central printers just shorting yen.  afterall, the only thing that matters is destroying yen to boost stocks because artificial wealth is the only thing that matters in this ponzi world.

The Axe's picture

true.....true.....why explain  it...its fucking broke

Great Unwashed's picture

The news is smoke and doesn't matter. It never did.

sudzee's picture

No prob. Yellen loading up the broomstick for an (outright) OQe drop on wall street at 1:30.

orangedrinkandchips's picture

All due respect ZH.....but it doenst matter of an excuse.....let the programs run and SQUEEZE CITY......



venturen's picture

Can't the FED just put them on the payroll as their pretend economy knows no bounds!

Stoploss's picture

This means higher utility rates. Yay.

sbenard's picture

Who needs reality? We have PRINTED prosperity now!

papaswamp's picture

Except the NSA numbers all degraded badly. 900,000 new unemployed ( NSA). Participation rate declined again even in the face of a declining workforce size.

Ness.'s picture

The sheep at home don't pay attention to the details.  They'll see the DOW was up and consider all is well.  

Happy hour and purple hooter shooters for the bar... on me.









Woodhippie's picture

I'm gonna need directions.