Mega Disparity Should Shock Investors, Something Very Off With This Price Action

The Non Farm Payrolls Report came in at a whopping 287,000 today. This blew expectations out of the water. Most economists were expecting between 150,000 and 200,000. A strong jobs number puts the Federal Reserve hiking interest rates back on the table for later this year, perhaps post election in December 2016. However, there is some major price action that should really freak investors out.

The jobs number being stronger than expected should have had the impact of seeing gold and silver sell off sharply. The Dollar should have popped substantially and the 10 year yield should have jumped. Simply explained, since a super strong jobs number put interest rate hikes back on the table sooner than expect, interest rates (10 yr yield) should have jumped. That did not happen. In addition, gold and silver have been a safe haven for scared investors all year. A stronger than expected jobs number should have relieved some of those economic fears, thus causing selling in the safe haven metals. That did not happen.

What does this mean? Honestly, from an economist and a long time trader, this is perplexing. If the price action we are seeing holds into next week it tells of a dark future. It describes a 100% lack of belief in the Federal Reserve. In fact, Janet Yellen and her Federal Reserve presidents should be extremely freaked out as well. The reaction in the 10 yr yield, gold and silver tells us that the stock market believes interest rates are not going up no matter how strong the economic data gets. The last time things got this much out of wack was just prior to the 2007 stock market top. The Federal Reserve has artificially kept the market up for 7+ years now. A loss of confidence could see a return to that type of epic disaster.