On Friday, July 5th the entire global markets were waiting for the one major economic report to be issued on that day; this being the payroll report. Well the report came out at 8:30 AM EST and showed a gain of 195,000 which was far better than was expected that being 163,000. Well on Friday the markets in the US went wild and the Dow gained 147 points on a day that was not supposed to be a heavy trading day due to the 4th of July holiday on Thursday. One key aspect of the report that was overlooked in the bedlam of buying was the unemployment rate; which held at 7.6%. What this tells me is that the United States created 195,000 new jobs but also lost as many if not more due to either layoffs or new people entering the workforce. Whereas we can argue that each year around this time of year it’s expected that new people will enter the workforce (after all wasn’t last month June and didn’t a number of people graduate?). The fact remains that the US economy isn’t creating a number of net new jobs to keep up with population growth. Whereas in the US virtually everyone was popping the champagne cork saying “see, there’s no job problem in the US” other parts of the Global Economy weren’t so easily fooled by these numbers. Case-in-point: Chart courtesy of Trend Following Trades (www.trendfollowing trades.com) The above chart shows the German FDAX futures contract on July 5th. The 1st blue arrow shows what happened at 8:30 AM EST when the report came out. The 2nd arrow shows what happened after 9 AM. The fact is the FDAX closed down as did the FTSE, CAC and every other European exchange. They weren’t so easily fooled. Of course everyone in the US is now also saying “well it’s time to taper”. Not so fast. The unemployment rate has a long way to go to hit 6.5% which is the target whereby the Federal Reserve will evaluate the FFR (Federal Funds Rate) and then decide. Want more proof? This article provides more evidence. Ever since the last FOMC meeting when Bernanke spoke and held a press conference, the entire global community has baked in QE tapering as early as September yet Bernanke never said this. The Federal Reserve’s top “A” players have also reiterated this as well. What makes matters worse is when you have lower level FOMC members publicly stating that it could happen. This occurred on Friday, June 28th when a virtually unknown FOMC member (Stern) publicly stated such. Since when does the press and institutionals put words into the Fed’s mouth? Clearly they want rate hikes as it will increase their wealth. But know this, ever since that press conference the Dow has not regained parity and only time will tell if this remains the case. But this is what happens when perception become reality”¦. Nick Mastrandrea Nick Mastrandrea Mastrandrea is the author of Market Tea Leaves. Market Tea Leaves is a free, daily newsletter that discuses and teaches market correlation. Market Tea Leaves is published daily, pre-market in the United States. Interested in Market Correlation? Want to learn more? Signup and receive Market Tea Leaves each day prior to market open. As a subscriber, youâ€™ll also receive our daily Market Bias video that is only available to subscribers. View All Post By Nick Mastrandrea Opinions share Read Next USD/CAD Outlook July 8-12 Kenny Fisher 8 years On Friday, July 5th the entire global markets were waiting for the one major economic report to be issued on that day; this being the payroll report. Well the report came out at 8:30 AM EST and showed a gain of 195,000 which was far better than was expected that being 163,000. Well on Friday the markets in the US went wild and the Dow gained 147 points on a day that was not supposed to be a heavy trading day due to the 4th of July holiday on Thursday. One key aspect of the report that was… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.