Bears continue to search for a bull market killer rationale, but the stock market’s uptrend remains strong
Thursday’s and Friday’s four mini-worries combined into a Wall Street wind that felt like risk. However, each individual worry was only a slight breeze that will soon dissipate. Therefore, expect stock market thoughts to return to potential gains.
The four mini-worries and why they are non-starters (of a downtrend)
1. The unemployment report’s initial claims, billed as a dangerous increase
However, initial claims actually dropped. So, why all the teeth gnashing? Once again, it was the use of misapplied seasonally adjusted factors that converted the drop to a rise. Those seasonal adjustments apply to normal unemployment cycles, but they do not apply to this abnormal, coronavirus-driven unemployment period.
Here is the math…
(Unemployment statistics is an important area to understand because similar problems are coming in the weeks ahead.
