Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – March 3, 2010

We're Above Support Currently

ADP Reports Losses

American Data Processing, which is America’s largest payroll company, reported that we lost 20,000 jobs, in February.  That’s in the Private Sector alone.  The government, generally, hires workers, so that number could be skewed a bit, however, keep in mind that we’re currently having the census bureau hire many Americans to help take statistics all over the country.  That will have an effect on the jobs numbers, too. The revised jobs numbers, for January, were even more alarming.  They revised the 22,000 jobs lost, to a 60,000 jobs lost number.

Yesterday’s Losses

We were in a lock pattern, the last couple of days, and yesterday was a wild roller coaster ride.  We maneuvered below the 100-Day Moving Average, bounced off of the 25-Day Moving Average and ended the day, right where we started.  So, to avoid a heart-attack, locking was more relaxing.  Today, we’ve moved right back down to the 100-Day Moving Average, but so far, we’ve avoided piercing that level of support.

Obama’s Health Care Statement

President Obama is scheduled to talk, today, about the stale-mate that’s currently occurring with Senator Bunning’s consistent objections to the $10 Billion Obama Health Care Plan.  He may indicate that he will file to move ahead with a reconciliation plan that only needs 51 votes, as opposed to 60 votes, in the Senate, for approval.  Bonds may not like these statements, as the United States deficit will have to increase, in order to financial support a bill, like this one.

Signs Point To Floating...However...

Locking Advice

With the Jobs Numbers slated for Friday, this is a tough call.  We have support, at the 100-Day Moving Average, and it’s going to be tough to break through the highs (or lows, for interest rates) of the last six months, so, I would lock.  Even though things could get better, it’s only a chance, and if they do get better, I think it will be for a short time, as investors will realize this, and cash in on their earnings.

Related Must Reads

ADP is O-F-F: A History of Non-Reliable Information
How Moving Averages Effect Interest Rates

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