Dismal Jobs Report Sends Stocks Reeling

Tyler Durden's picture


UPDATE: Stocks have bounced on USDJPY's jump back to 102 (as we warned) but Treasuries are not playing along


Bonds are surging and gold is well bid as the jobs report had little to offer the hopeful. The anti-goldilocks number slammed bonds with the 10Y Yield to unchanged on the week (down around 8bps on the kneejerk), gold is testing $1270 as JPY strength provides ammunition for derisking in the equity markets. S&P futures spiked 11 points higher on the release as algos went wild, then fell over 20 points from that high and are bouncing back modestly now. Of course, we are still 45 minutes from the US open so expect USDJPY to be levered back to 102 and lift stocks to make retail believe everything is fine...



and Spot The Difference...


Charts: Bloomberg

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Fri, 02/07/2014 - 09:46 | 4411267 TideFighter
TideFighter's picture

PPT, buckle your seat-belts and order pizza-it might be a loooong day!

Fri, 02/07/2014 - 09:48 | 4411282 SlipStitchPass
SlipStitchPass's picture

Loing day watching them walk gold back down....must not break $1270.00

Fri, 02/07/2014 - 09:51 | 4411294 onewayticket2
onewayticket2's picture

isnt central planning great??   they really seem to have a handle on it all....



Fri, 02/07/2014 - 09:53 | 4411320 Headbanger
Headbanger's picture

Agree!  I don't think the Central Planners could have fucked things up more if they tried!

Fri, 02/07/2014 - 09:57 | 4411340 SoilMyselfRotten
SoilMyselfRotten's picture

And there they go, nice gap down in gold...so how many contracts just dumped on the market?

Fri, 02/07/2014 - 09:54 | 4411339 tarsubil
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Like the Ukraine thing. All they need are some paid trolls to go out and shout down the dissenters and - boom! - problem solved.

Fri, 02/07/2014 - 10:05 | 4411404 onewayticket2
onewayticket2's picture

Let's leave MSNBC, CNN, NBC, CBS, ABC, and other out of this....

Fri, 02/07/2014 - 09:50 | 4411307 Levadiakos
Levadiakos's picture

Stocks have un-reeled. USDJPY 102.02



Fri, 02/07/2014 - 09:51 | 4411318 LawsofPhysics
LawsofPhysics's picture

I would love to see the USDJPY go to 300...

Hey Abe, jump you fucker!!!

Fri, 02/07/2014 - 10:13 | 4411428 onewayticket2
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Kyle Bass predicted 200...

Fri, 02/07/2014 - 09:57 | 4411354 Levadiakos
Levadiakos's picture

I will fade the rally. Mark Zandi is a carnival barker

Fri, 02/07/2014 - 09:54 | 4411336 Stoploss
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Job's report sends USDJPY up of course because the "winter" is toooooo cold.

Looks like winter needs to be banned..

Fri, 02/07/2014 - 10:00 | 4411355 BandGap
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Talking Points:

  • USD/JPY Technical Strategy: Flat
  • Support: 101.85 (23.6% Fib ret.), 100.75 (Feb 2 low)
  • Resistance: 102.27 (horizontal pivot), 102.53 (38.2% Fib ret.)

The US Dollar turned higher anew against the Japanese Yen, breaking above the 23.6% Fibonacci expansion at 101.85 to expose a support-turned-resistance shelf at 102.27. A further beyond this boundary targets the 38.2% level at 102.53. Alternatively, a reversal back below 101.85 on a daily closing basis exposes the February 4 low at 100.75.

Close proximity of near-term up- and downside technical barriers argues against taking a trade at the moment from a risk/reward perspective. Furthermore, The Yen remains highly sensitive to churn in risk appetite trends, making the currency’s crosses vulnerable to sharp volatility as the upcoming US Employment report comes across the wires. We will opt to stay aside for now.

Fri, 02/07/2014 - 10:06 | 4411393 LawsofPhysics
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So the japanese are committing suicide?

Fri, 02/07/2014 - 10:14 | 4411439 The Dunce
The Dunce's picture

Looks like I'll be spending next Christmas at the food bank.  Bitches.

Fri, 02/07/2014 - 09:46 | 4411268 Sudden Debt
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Expectations... everybody has different kinds

Fri, 02/07/2014 - 09:52 | 4411308 RebelDevil
RebelDevil's picture

Hey, just remember the USDJPY is the tail that wags the dog. - woof woof!

Fri, 02/07/2014 - 09:46 | 4411270 jubber
jubber's picture

er......that was 10 minutes ago now nearly all back positive

Fri, 02/07/2014 - 09:51 | 4411288 jtz5
jtz5's picture

Yep...back to pre-announcement levels, S&P +6.5.  What a joke.  It really amazes me that anyone can think these are real markets.  What a bunch of friggin' morons.

Fri, 02/07/2014 - 09:55 | 4411331 RebelDevil
RebelDevil's picture

oh, they're real alright. ... just disconnected from reality and living a life of their own.

Fri, 02/07/2014 - 09:58 | 4411349 tarsubil
Fri, 02/07/2014 - 09:51 | 4411290 Sudden Debt
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"tapper" will soon stop now so why not rally 20%?

Fri, 02/07/2014 - 09:53 | 4411327 machineh
machineh's picture

Less than 15% rally will get us to Janet's 'S&P 2K by springtime' target.

Pass it on ... we need some 'positive expectations' here ... for the greater good.

Fri, 02/07/2014 - 09:48 | 4411271 DanTak
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they will catch the bid

Fri, 02/07/2014 - 09:47 | 4411272 Temporalist
Temporalist's picture

And gold and silver capped instantly.

Fri, 02/07/2014 - 09:49 | 4411274 Charles Nelson ...
Charles Nelson Reilly's picture

$1270 seems to be a pretty significant line in the sand for gold

Fri, 02/07/2014 - 09:51 | 4411301 Sudden Debt
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1278$ is

Fri, 02/07/2014 - 10:02 | 4411372 disabledvet
disabledvet's picture

that's for the Bankers.

They need that price of gold...well, obviously they need it at 3,000 an ounce actually.

If that price breaks "many others will follow."

Fri, 02/07/2014 - 09:50 | 4411276 TruthInSunshine
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Stock "market" indexes will close green on the day.

Blame for the bad jobs print will be unequivocally placed on "the weather."

Fed FOMC doves will be out in full force, speaking of and hinting at possibility "un-taper."

Embrace the fraud.

Fri, 02/07/2014 - 09:50 | 4411304 Cortez
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I wonder if there will be talk of a taper "pause"?

Fri, 02/07/2014 - 09:52 | 4411326 mayhem_korner
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10-Yr down ~50bp.  No need to pause taper when the "market" will do it for ya.  It's the "Silent Yellen" strategy...

Fri, 02/07/2014 - 09:50 | 4411312 LawsofPhysics
LawsofPhysics's picture

"Embrace the fraud." - LOL, did you work for Nixon?   Yes, "it's the weather", as in whether or not anyone in the financial sector is going to actually go to prison.  We better ask John Corzine and Hank "Tanks in the streets" Paulson what they think.

Fri, 02/07/2014 - 09:50 | 4411277 Dr. Engali
Dr. Engali's picture

The worst possible outcome for the 'markets'. No job growth and the official unemployment rate (as bogus as it is) closer to that magical 6.5% cut off point.

Fri, 02/07/2014 - 09:49 | 4411286 Cortez
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The Fed will move the goalposts on the magical cut off point.

Fri, 02/07/2014 - 10:47 | 4411557 SoilMyselfRotten
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The Fed will move the goalposts on the magical cut off point.

Let me fix that for you:

The Fed will REmove the goalposts on the magical cut off point.

There, fixed.

Fri, 02/07/2014 - 09:47 | 4411280 Cortez
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Any of the 113k "quality" jobs?

Fri, 02/07/2014 - 09:53 | 4411330 mayhem_korner
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114K of the 113K were temp snow-plowing jobs.

Fri, 02/07/2014 - 09:53 | 4411332 dontgoforit
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Policy for numbers reporting should have a caveat:  less than 40 hrs/wk but more than 20 hours should be classified, "negatively employed," meaning just enough to keep under the obamacare breakthrough level so the subsidies and food stamps are still availalbe.

Fri, 02/07/2014 - 09:50 | 4411281 DanTak
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it was cool to see that gold was pushed down before the #s.

Fri, 02/07/2014 - 09:49 | 4411295 GetZeeGold
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Fri, 02/07/2014 - 09:50 | 4411289 sbenard
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Wall St will see this news as assurance that the Fed will END the taper. They'll expect the Fed to end the taper now. Don't be surprised if stocks RALLY on this news. What a twisted world it has become!

Who needs jobs? Who needs an economy? Who even needs reality any more? We have PRINTED prosperity now!

Fri, 02/07/2014 - 09:52 | 4411298 One And Only
One And Only's picture


Fri, 02/07/2014 - 09:51 | 4411300 The Axe
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stocks moving up.....weak strong    up is the action.......

Fri, 02/07/2014 - 09:50 | 4411302 CheapBastard
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"The trend is your friend."

Fri, 02/07/2014 - 09:50 | 4411305 Sufiy
Sufiy's picture

Huge Miss In Jobs Report: +113k Only - Sends Gold Sharply Higher 

Now let's listen to all excuses and polish the #taperpause on TWTR. Gold needs to close above $1270 to start the mother of short squeeze. Is this number bad enough to be "good" again to levitate the markets or we can move close to Thomas Demark 60% plunge of S&P 500? After everything what FED has done to 'save the economy" we can hardly see this as happening, expect the life support to be plugged in again.



Fri, 02/07/2014 - 09:52 | 4411306 Skin666
Skin666's picture

Tyler(s), are you trying to say it's all about the USDJPY?



Fri, 02/07/2014 - 10:05 | 4411385 disabledvet
disabledvet's picture

yeah, i "like" that meme too.

talk about "scaling the cliffs of insanity."

Fri, 02/07/2014 - 10:13 | 4411434 therearetoomany...
therearetoomanyidiots's picture

When the world goes insane...

Fri, 02/07/2014 - 09:51 | 4411316 agent default
agent default's picture

Gold crashed then spiked now going down fast again.  No manipulation here, honest.

Fri, 02/07/2014 - 09:55 | 4411335 Charles Nelson ...
Charles Nelson Reilly's picture

It's really not surprising. At what point tho, do these morons who manage trillions look at it and say "something ain't right here"

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