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Stocks to Watch on Monday After September’s Disastrous Jobs Report

by | Oct 8, 2021

It’s been an interesting time on Wall Street to officially kick-start the first full trading week of October. And it ended with a tremendously disappointing September 2021 jobs report…

On Monday, we started off with the continuation of bearishness that spilled over from September, and we had an intraday reversal during the middle of the week that brought a lot of stocks up.

Then on Thursday, we had a huge buyout of oversold names — like Chinese stocks. It looks to me like a little bit of a capitulation reversal happened, and we’re just dealing with the fallout now.

Hell, I’m dealing with the fallout after putting a short on JD.com Inc. (Nasdaq: JD) Thursday, only to have it trend higher during Friday’s open. 

And to make matters worse, we just got the numbers for the September 2021 U.S. jobs report and — you guessed it — it was anything but satisfying for investors.

What to Watch After a Disappointing September 2021 Jobs Report

This was the second month in a row in which the U.S. added less jobs than analysts expected. There were only 194,000 jobs added in September… compared to the 500,000 we anticipated. That is a significant miss and a HUGE red flag that COVID-19 is still a major roadblock that’s disrupting the economy.  

While the unemployment rate declined from 5.2% to 4.8% for the month, investors can only focus on the glaring failure of the September 2021 jobs report.

People expected the economy to roar back last month, so investors are going to read this as the Fed not having to raise interest rates or taper the economy as soon as planned. 

And do you know what this ideology is already doing to the 10-Year Treasury yield? 

Not a damn thing! It doesn’t care, which is so interesting.

This behavior shows me we still have a huge amount of upside left to go.

Usually, on a major jobs report miss like that, I’d expect we’d test the 150 level (1.5%) on the downside on yields. But instead, what we’re seeing is it hanging tight around the 157 level… and I expect explosive moves coming from this chart soon.  

However, there’s a bright side to the jobs report and the Feds keeping rates low: commodities love free money.

Especially these stocks.

Check out the video below to learn more about the September 2021 jobs report, and what to watch going into Monday morning. 

Send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel

WRITTEN BY<br>Jeff Zananiri

Jeff Zananiri

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