Weekly Unemployment claims saw a very big jump to 474K, economists were expecting 400K. The labor department has made a note that the claims maybe elevated due seasonal adjustment issues due to the late Easter and some auto plant closings due to part shortages from Japan. I think these are pretty valid reasons but still the increase over the past few weeks is quite dramatic, so I think even when you account for these one time issues there is some indication of macro weakness. The treasury yields and commodity markets continueto show weakness which bolster the view that there is a cause for concern on the macro front.
We are a little bit oversold in the very short run, so we may get a small bounce but I think it is time to be more cautious and trade from the bearish side.
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