It appears Goldman clients are once again taking a bath. Having proposed that with monetary concerns temporarily sidelined, "good news should be good news for risky assets," today's better-than-expected jobs print (following China's better than expected PMIs) has sent stocks lower, bonds higher, and crack gold and oil…
Stronger USD has sent commodities reeling…
Extending overnight losses from China's "Good" news…
But bonds are bid as stocks slip lower…
As we pointed out just yesterday, Goldman suggested a "test" forits own progonostication:
…sensing the muppets' rage if they are all piledriven once more, Goldman provides a useful test to determine if at least this time it will right: that test will be the market's reaction to tomorrow's payrolls. Goldman says that as of this moment "good news should be good news for risky assets" – well, tomorrow's NFP will demonstrate that: if payrolls come in above the 210K consensus, then stocks should surge… assuming Goldman is right.
Put differently, with monetary concerns temporarily sidelined, good news should be good news for risky assets. Tomorrow’s economic calendar will provide an interesting test. We expect US data to be moderately stronger than expected. Consensus forecasts expect nonfarm payrolls to rise 210k vs. 220k for GS (from 242k last month) and ISM manufacturing to rise to 50.5 vs 51.0 for GS (from 49.5 last month).
Alternatively, if payrolls miss big, then the market should tumble. We'll know if Goldman, which two months ago said to short gold, will finally have at least one correct call.
It appears, once again, the Goldman clients have been Gartman'd…
The bottom line is simple – with China's recovery back on, and Chinese FX and equity market volatilitry "under control", The Fed is leftg with little excuse for "international developments" and is thuis forced to focus on domestic data – which, through various smoke and mirrors, is strong… therefore, for the free-money addicts "good" news is terrible news – especially at a 23x GAAP P/E.
via Zero Hedge http://ift.tt/1pQyiXu Tyler Durden