The Spin Begins As The Dollar Tanks

The media and analysts immediately started to spin the jobs report to the positive side after Non Farm Payrolls came in at -95,000. Private sector jobs were +64,000. This tells us that the majority of the job losses were government jobs. The markets first spiked lower, the S&P futures dropped to -10.00. They then shot higher to go positive as the true market mover started to take control. What is this true market mover? The U.S. Dollar. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) was trading slightly higher going into the Non Farm Payrolls number at $22.52. After the number was reported and the futures dropped, the Dollar started to drop off a cliff. The futures responded by going positive at the UUP fell to $22.41, a massive drop for the Dollar, but saving the markets. Just during the writing of this article, the UUP has now reversed again and moved to the positive side, trading back at $22.53. The futures are moving lower on this trading a -5.25. This market continues to only care about the Dollar and will trade all day inverse to the U.S. Dollar. To gain more insight, analysis, guidance, swing trades and education, join the Research Center. Gareth Soloway Chief Market Strategist www.InTheMoneyStocks.com