Thursday, September 1, 2016

Jobs Report Tomorrow

I have a sneaking suspicion that tomorrow's jobs number will be a disaster.

The only reason I believe this is because is because if it's strong than the Fed will be even more pressured to raise rates which I don't think they want to do right before the election.

Additionally the deflationary mindset is gaining strength. With a threat of raising rates the dollar will strengthen putting more pressure on the commodities complex further reinforcing the deflationary theme.

One thing to consider is that after the election they may want a collapse to justify more stimulus. But fear not, the last time the Fed raised rates the Dow collapsed and silver and gold went on a tear.

Let's look at the CRB index to demonstrate my point:

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