Unemployment Hits 10.2%

October's jobless reading hit the number many watchers have been expecting for some time: 10% employment. The underemployment rate rose 0.5% to 17.5% showing that over 1 in 6 people cannot find a full-time job. On Wednesday, the Federal Reserve released its statement with unchanged language from the previous, stating that they will keep "exceptionally low levels of the federal funds rate for an extended period". Many fear that this stance will cause rampant inflation down the road.

The gold market is reacting strongly to the job number this morning jumping to new all-time highs as the fear trade takes hold. It seems recently that gold has been able to move higher without the help of other markets. The last 2 days of consolidation have been a great sight to see and I expect much higher prices in the short-term. After selling off initially, the equities market have bounced back aggressively. On feared decrease in demand, oil dropped sharply after the number. I still have my long oil position but saw some profits evaporate this morning. My stops are much lower though so I am sitting and waiting.