Daily Analysis and Trade calls

As expected N.F.P affected Gold a most after weak data and so do US dollar but biggest concern is that " why data was so weak " after immense easing and still going on but the unemployment rate hardly coming down. I like Business Insider tweet "The Scary Thing Is That This Bad Jobs Report Wasn’t Even about the Sequester “which gives us more shuddery picture of future. The amazing thing is  Japan is also on same path and Mr. Soros and Mr.El Erian has expressed their grave concern about it.

    Signs of weakness pepper the jobs report. Though the unemployment rate ticked down to 7.6% that was due to a surge of workers exiting the labour force. Employment in the "household survey", from which the unemployment rate is drawn, also dropped, as did the labour-force participation rate and the employment-population ratio (both of which performed poorly through all of the past year despite decent payroll growth). There will be ample concern that worse is to come, given that March budget cuts will have scarcely registered in this report. No doubt fears will arise that for a fourth year running the economy will have begun the year strong only to drop into a summer swoon. The Fed's open-ended asset-purchase plan and economic thresholds for rate increases mean that when bad news hits policy is automatically expected to stay accommodative for longer. Recent comments from Fed officials indicated that sustained, decent employment growth might lead QE3 to be scaled back by the end of the summer; this report has made that much less probable. And to some extent, this report simply drags expectations back to where they were early in the year, when it was anticipated that fiscal policy would meaningfully slow growth in the first half of the year but allow for an improvement later on. If surprisingly good numbers led some to believe that the American economy could shake cuts off without any effect, then perhaps they were a bit over optimistic.

Weak data helped our calls to achieve targets for buying Silver and selling S&P and ironically buying on Crude oil and Copper also worked well though it didn’t achieve target but were positive.

Following are trade calls for today,

• Sell Eur/Usd at 1.3020 stop above 1.3070 target 1.2910
• Buy Usd/Chf at 0.9290 stop below 0.9230 target 0.9380 or sell at 0.9380  stop above 0.9435 target 0.9300
• Sell Dow at 14570 stop above 14635 target 14460

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