Jobs Report
Non-farm Private Payrolls came at 156K vs. 170K consensus. Unemployment Rate came at 4.6% vs. 4.8% consensus. Average Work Week came at 34.4 vs. 34.4 consensus. Hourly Earnings came at -0.1% vs. +0.2% consensus.
The report, not too hot and not too cold.
The Rate Hike
After this report, consensus is approaching 100% for a rate hike in December.
Money Out Of Europe
Money is flowing out of Europe into the United States. European stocks are falling. The reason is the jitters before the Italian referendum. As we have shared with you before, a ‘no’ outcome has a good shot.
Smart Money Steps Into Gold
In a rarity these days, smart money is lightly buying gold. Perhaps the reason is to guard against a negative outcome in the Italian referendum. If the outcome is a ‘no’, gold can easily jump up $40 to $80.
In another rarity, the momo crowd is selling gold. It appears that the reason for selling is that the momo crowd has incurred huge losses in gold and now they cannot take the pain.