Preparing For The Employment Numbers – Afternoon Trade Alert For May 5 2016

May 5, 2016 | Trade Alerts and Ideas

Tomorrow we get the unemployment report for April. If the Weekly Initial Unemployment Insurance Claims are any indication the report should show continued strength in the jobs market, but perhaps not quite as strong as we have seen over the past several months.

Weekly Initial Unemployment Insurance Claims

It is actually a toss-up on tomorrow’s unemployment numbers since so many Weekly Initial Unemployment Insurance Claims reports have been at levels not seen since 1973! The job market remains hot as does the car market.

These two seems to go hand-in-hand. When people are working they can afford big-ticket items and cars next to homes, are the biggest of ticket items. Auto and Truck sales are booming so obviously a lot of people have jobs. Yet inflation is nowhere to be found.

That’s because inflation is primarily imported and not domestic. With oil and most commodities depressed, there is very little pressure on prices. That’s continuing to keep a lid on inflation.

So while employment may continue to soar higher, unless the rest of the globe starts seeing their employment rates improve, the chance of inflation is limited. This is great news for the home economy but not so great for other countries around the globe. Check out European unemployment rates. The mean average is 10.3%. Countries like Germany are at 4.3%, Czech Republic 4.7% and Great Britain 5% unemployed but they are the exception. France is at 10.2%, Spain is at 22.7%, Greece 24%, Portugal 12.3%, Italy 11.7%, Finland 9.2%, Ireland 8.8% and the list goes on. Countries like India claim 3.6% unemployment but records are incredibly poor and universities claim the unemployment rate is anywhere from 15% to 30% depending on who is reporting. Russia claims a 6% unemployment rate while unofficial sources say it is above 10%. China claims their unemployment rate has been around 4% for over a decade. Just how believable that number is, is anyone’s guess. In Canada the unemployment rate is 7.1% and aside from Venezuela which is above 14% although most claim the rate is 25%, most of South America claims rates below 7%………the rest of this article and the trade outline is for FullyInformed Members.

Trade Ahead Of The Employment Numbers

Each month I have put together a trade using the same strategy, ahead of the employment numbers. Here is the outline of the trade presently in place for tomorrow’s unemployment report. To read the latest afternoon Trade Alerts and ideas, FullyInformed Members can log in directly through this link or Members can sign in to the full members site here. Non-members can join here or read the benefits of being a member.

Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.