By the Numbers

Unemployment Friday is upon us again, this time there is very little optimism going into the numbers. After yesterday's huge sell-off in the equity markets many investors will be looking for signs of this correction to be a buying opportunity or a sign of a double dip ahead.  With so many asset classes at the extremes right now, interventions into asset prices could be on the rise.  The Swiss and Japanese government have provided stimulus to weaken their respective currencies.  The bond prices of short term, safe haven bonds are near negative real rates while others are hitting post euro highs.  Margin requirements on commodities have been adjusted as well.  The equity market might not be far behind.

The equity market has just come off of fresh stimulus from QE2 and the jobs numbers tomorrow could be the fuel needed to have traders considering a third.  If the employment situation doesn't come in positively, it will compound the announcements of cuts already made by companies and could put more people into the bearish camp.  It could be said the much of the 2nd quarters performance could be decided on the days and weeks after this announcement.