Monday’s Trading – 7/6/2010

Jobs Hysteria
On his CNBC TV show Friday night, Larry Kudlow called Friday’s non-farm payrolls report “a pig of a jobs report.” The private economy added 83,000 jobs, and that’s a disaster? And that was double the 41,000 private-economy jobs created in May. Why exactly is this a sign of the Apocalypse? The report was certainly not a “pig”. As a matter of fact, it was it was a much more attractive animal such as a zebra or a giraffe.

22 Responses to “Monday’s Trading – 7/6/2010”

  1. George says:

    Matt,

    You’re on a ‘roll’ with your posts. I bet Ziggy luvs this market!

  2. George says:

    Service sector index down in June to 53.8, weaker than expected. (Source: CNBC-RT).

    Right after that message the market bounced. Another reason not to trade on news.

  3. George says:

    On the MOO/DOO chart, price on SPY is coming back to the previous support line which could now act as resistance.

    http://i49.tinypic.com/2cpryuw.jpg

  4. George says:

    By the time I made that last post, SPY’s price has almost touched the resistance line. Also, my line could be off .10c to .20c, so that is another consideration.

  5. George says:

    SPY touched 60min 36MA and has backed off some. There’s a gap on the upside and today’s gap on the downside. This will make a good ping-pong play.

  6. Stringm says:

    Matt

    I am not sure about what went on with withholding tax last year. It appeared that less was being withheld, but the tax had to be paid just the same at income tax time. I observed this and my wife upped her withholding. She is in admin at a small school. She says numerous teachers had done the same thing. Multiply this event all over America and that might explain some of the increase in withholding. I don’t have a clue, but thought I would throw that out.

    String

  7. George says:

    Stringm,

    That’s correct… less was being withheld for the Obama incentive. That’s gone now, to my knowledge.

    I was also thinking what part the TARP plays in that role. Taxes are being paid on those funds which I’m sure eventually end up as income taxes.

    Regardless, the facts are the facts.

  8. admin says:

    String,

    There definitely was a payroll tax cut last year. However, in order to receive it, you had to file a Schedule M on your 1040:

    http://www.irs.gov/pub/irs-pdf/f1040sm.pdf

    Did your wife do that?

    The same will be the case again next April. Less is being withheld this year, and I’m assuming that there will be another Schedule M to file next year.

    Matt

  9. George says:

    I didn’t realize the tax cuts were going to continue. Good stuff.

  10. Stringm says:

    Matt

    Thanks for the info. I do the taxes and filed no Scheduled M. Now I will be looking into filing an amended tax return.

    String

  11. admin says:

    String,

    I bet a lot of people missed it. All that there was on Line 63 of the 1040 was: “Making work pay and government retiree credits, Attach Schedule M”.

    It was pretty cryptic, and may have defeated the goal of the credit.

    Matt

  12. George says:

    The tax withdrawn on my wife’s check was less last year – automatic process the school system did. We were worried that not enough had been taken out. It turned out okay.

    My accountant does our taxes, I’ll ask her what the scoop is for our situation. I’m thinking institutions are handling it differently, if that’s possible. I donno.

  13. Stringm says:

    Matt

    I am on hold right now with the IRS. The first gent that I talked with said they were correcting individual returns. Put me on hold to see if my return was being amended automatically. Seems like another stupid way to handle an issue. Thanks though, I can eat steak tonight cuz you found me 8 bills!!!

    String

  14. George says:

    WTG Stringm… Every dollah counts!

  15. Stringm says:

    Matt

    As it turns out a check was setting in my mail box. I stayed on hold for 15 minutes, but found out they mailed the check last Friday, and it was in the mail box. They even paid 2 bucks in interest!

    String

  16. admin says:

    String,

    Nice! I can’t believe that the check was already there. But then again, the Dems need every bit of goodwill they can muster by November.

    Matt

  17. George says:

    Going toward gap fill. Green shoots are shrinking.

  18. George says:

    That last surge filled some intraday gaps except for SPY which is close.

  19. George says:

    SPY gap filled.

  20. George says:

    Wish every day was as good as today.

  21. George says:

    Hasta,

    I’m going to a 3-D movie. Hard to watch 2-D after the 3-D Cinemax experience. :)

  22. Mitch says:

    Right on George!