Weekly Economic and Stock Market Commentary August 9, 2021
As for the stock market specifically: The US markets, specifically the S & P 500, continue to win the green (gold) medal for best stock market performance. I couldn’t resist the Olympics reference, sorry about that.
Here is something interesting: the markets took the news of a great employment report with good cheer instead of cringing with the worry interest rates will rise.
We gained ground with the bullish percent indicators last week. We are at mid-field to use a football metaphor. To keep my metaphors consistent, we have the ball (WEALTH ACCUMULATION) for the NYSE and Optionable Stocks, and the opposing team has the ball (WEALTH PRESERVATION) for the OTC.
Remember, Xs mean OFFENSE or wealth accumulation, while Os mean DEFENSE, or wealth preservation.
Below is where our indicators stand as of August 6, 2021 (Courtesy Dorsey, Wright, and Associates).
On a general note: The Department of Labor announced the US economy added 943,000 jobs in July. The unemployment rate dropped to 5.4%. Leisure, hospitality, and government jobs were the three biggest contributors to the gains. Many states ended the enhanced unemployment benefits during the month. That impact was not assessed in the report. I did not see any data concerning wage changes.
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