Well, today we got the horrid news that the unemployment rate spiked up to 8.1% from 7.6% previously. In fact, over 650,000 jobs were lost last month.<\/p>\n
Here\u2019s the thing about fundamental trends\u2026they don\u2019t change quickly. When the \u201cfundamental ball\u201d is rolling in the right direction, it goes for a long time. However, unfortunately the inverse is true also: When the \u201cfundamental ball\u201d is rolling in the wrong direction, it\u2019s not quickly turned around either.<\/p>\n
So what does a higher unemployment rate and skyrocketing job losses mean? It means that you probably won\u2019t see a bottom in the stock market until this bleeding stops.<\/p>\n
As my readers know, I have a saying: Economies turn around like ships and not like speedboats. Therefore, knowing this, instead of trying to \u201cpick the bottom\u201d in the stock market, why not turn to what\u2019s working now and not what \u201cmay\u201d work years from now (because that\u2019s how long it may take for many people stock positions to come back above water).<\/p>\n
Even though stocks started off \u201cup\u201d this morning , do you really think that will continue as more corporations layoff workers and these \u201cworkers\u201d which are also \u201cconsumers\u201d who will<\/span> <\/span>spend less and less, and even default on their bills? I don\u2019t think so. In fact, the market is correcting that \u201ctemporary upturn\u201d even now.<\/p>\n There\u2019s a lot of \u201cfundamental trouble\u201d staring the stock market in the face: 1 in 8 homes are in foreclosure and more than 103,000 individuals and businesses filed for bankruptcy last month.<\/p>\n Until this fundamental trend is stopped in its tracks, I don\u2019t see a turn around in stocks. When will this turnaround come? I look to the \u201cweekly\u201d Initial Jobless Claims numbers. Once we see a parabolic spike upward AND a notable reversal, then we will probably be at the BEGINNING stages of the reversal of the economic downturn and bear market in stocks.<\/p>\n See the chart below and you can get a visual of what I\u2019m talking about. Just before 2001, the last spike and reversal came about.<\/p>\n \n Initial Jobless Claims Spiked and Reversed Last in Late 2000<\/strong><\/p>\n \n When you see the chart, you can see why I say this will be the \u201cbeginning\u201d of a recovery once that spike and reversal happens. You\u2019ll note that it still drags on for the next year.<\/p>\n This is why I cannot emphasize enough to capitalize on<\/span> <\/span>something that is PROSPERING NOW as opposed to waiting until all of the employment and economic situations finally works itself out.<\/p>\n This is what you should do<\/span> <\/span>in order to protect your portfolio now!<\/strong><\/p>\n \n What\u2019s bottomed now and likely to recover first? There are many Japanese yen pairs in the forex market that appear to have bottomed in October and have based sideways since then. They appear to be poised for a breakout higher in the coming weeks to months ahead. However, they are NOT breaking to fresh lows like most other financial instruments all over the world.<\/p>\n In fact, USD\/JPY has recently broken out into new highs. It\u2019s one of the few financial instruments in the world to do this in this present economic environment. So it\u2019s always noteworthy to see something breaking out to the upside when most of the financial assets in the world are still breaking lower to the downside and will probably continue to do so for quite some time.<\/p>\n Therefore, you should check out these yen crosses: USD\/JPY, EUR\/JPY, AUD\/JPY, CAD\/JPY, etc. in the forex market.<\/p>\n Get a demo here<\/strong><\/a> so you can see what I\u2019m talking about. There you will have access to FREE, REAL TIME quotes and charts so you can get a feel for what I\u2019m speaking about for yourself.<\/p>\n![\"weeklyinitialjoblessclaims\"](\"http:\/\/gator1055.hostgator.com\/~alawai44\/fx\/wp-content\/uploads\/2009\/03\/weeklyinitialjoblessclaims.jpg\")
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