The Three Types of Headaches (22)

There are three major types of headaches and they all require a different form of treatment. They all hurt, they all cause pain and we all want to get rid of them. Most of us do not know what the different forms of headaches are, we just call it a headache and all we know is that it is very annoying and that it is painful. Most people think that there’s one way to correct all headaches but that is far from the truth. You have to know what type of headache you are dealing with to solve the issue. It all starts with knowing the different three types of headaches that people have (just like how I think about what permanent life insurane to get for me).

Tension headaches are the most common type of headache that people have. It is the type of headache where you just take an aspirin or some other over-the-counter medication and maybe in an hour you feel better. You lie down, you drink water and take medicine and you’re okay. The other type of headache is known as a cluster headache. It is a little bit more serious and it causes a lot more pain. This form of headache will come with more dizziness and it might affect your eyesight. After that you have the most serious type of headache of all, the migraine. A migraine can send a person to the hospital, it can cause them not to be able to do their job or school work and it can last for very long time. It is a very debilitating form of headache and it calls for Specialized Care.

PM Dear Dairy

American stocks rallied strongly today despite poor economic data pretty much everywhere.  Come to think of it, the data yesterday was even worse, yet stocks did pretty well then too.  The moves had players exchanging theories (LTRO QE, month-end, hedge funds, high-frequency trading) with nothing to hang their hats on.

Well, there were two things. First, European sovereign CDS put in a good performance today. It seems the Eurozone summit aiming to clean up Greece has gotten the nod from investors, and the risk premium allotted to lenders of European sovereigns has decreased significantly.  European stocks were significantly higher across the board, and US stocks often keep the pace.  Which they did.

The other piece of “good news” comes from Washington, where President Obama has announced an initiative to allow homeowners to refinance their mortgages at giveaway rates.  This plan was the subject of rumors a few weeks ago, and was denied by the White House, but now it is revealed for all to see.  Banks will be on the hook for the cost, but what the heck, it’s all their fault anyway.

PM Dear Dairy: Fish or Cut Bait Edition

Well well, look what we have here.  This is a longer-term chart of the S&P 500 going back to its all-time high in 2007.  I stumbled on this today and hadn’t realized we had gotten this high.  In technical circles this is a big deal.  First of all it’s a weekly chart and seen to be more important than daily or hourly versions.  Second, as you can see, this is our third test of the line, somewhat more significant than the second time out.  (If you’re new at this, this downward sloping line is a “resistance” line that can hamper further advances.)

We shall see.  My own sense is that this line does in fact have significance, and even if it does eventually break through to the upside, it will take a week or two to accomplish.  If it does succeed in jumping to light speed, it signals higher prices for some time, and we can monitor the progress by watching the line.  If the line holds, they bears are in luck, because the line is descending and further “tests” will occur at lower price levels.  Time will tell.

Tomorrow is the big NFP release.  As the Bespoke group has mentioned many times, the market tends to do well when the number is “as expected.”  The consensus is for an addition of 140,000 jobs.  We shall see.  In the meantime, a friend pointed out today that the past eight NFP days have been losers for stocks.  That’s a streak that’s meant to be broken.

AM Dear Dairy: TGIF

Last night’s Asian activity was not very memorable, to be honest.  Stocks are mixed but within narrow ranges.  Hong Kong’s PMI (Purchasing Managers Index) came better than expected at 51.9 (some growth) vs an expectation of 49.7, while China non-manufacturing PMI dipped from 56 to 52.9.  Also out of China:  HSBC’s Services PMI remained unchanged at 52.5.  A news item of passing interest is that China is limiting mortgage loans to foreign buyers to cool down property prices.  It’s a small item but interesting because it goes against the conventional wisdom that China is about to reverse course and stimulate the economy.  Not necessarily contradictory, but something to ponder.
In Euroland stocks are up yet again across the board, though not by much.  Europe added to our recent streak of PMI releases, coming in more or less as expected.  The EC PMI Composite came at 50.4 as expected, unchanged on the month.  Germany’s Services PMI came a tad weaker at 53.7 vs a 54.5, while France did a bit better, at 52.3 vs the 51.7 expectation.
There are news bits here and there about this and that, but nothing of significance.  All eyes are on the NFP number at 8:30, and though you never know, I’m guessing the number will be pretty close to expectations.
Shameless Plug Dept:  a few thoughts on copper.

PM Dear Dairy: Barn Burner

Today’s employment figures were monsters.  The most important part was a gain of 257,000 jobs last month, vs an expected 140,000.  The unemployment rate also dropped to 8.3% from 8.5% a month ago, comfortably bettering the unchanged expectations of the consensus of surveyed economists.  President Obama took a victory lap, and who wouldn’t, even the bears saluted these numbers.

There was a vocal minority of naysayers who argued that the BLS (the Bureau of Labor Statistics, the government body that tabulates the figures) was spinning up a storm, but the market wasn’t buying it.  The benchmark S&P 500 was up 1.46%, while bonds tanked, with bond prices down nearly 2%.  The bond market sell-off was a show of confidence that the recovery is on track, and that the economy is good enough to justify higher rates.

The only fly in the ointment was the “participation rate,” that is, the percentage of the population that is counted in the “workforce.”  This percentage dropped from 64% to 63.7%, meaning that 0.3% of the population dropped out of the workforce.  This drop would tend to decrease the unemployment rate, since the employed would represent a bigger proportion of the labor force.  But at the end of the (Fri)day, this would account for part of the drop in the unemployment rate, but would do nothing to take away from the sheer number of jobs added.