It is Saturday and time to catch up on what has been happening on the markets.  All the markets advanced further, the rally continues, for now.  More and more investors are being pulled into this “suckers rally”, it is nearly time for the next leg down.  Lets look at some of the facts.

Non Farm payrolls came in less than expected and everyone seems to be saying the recession is all but over.  But wait, last months horrible 663K jobs lost was revised up to 699K.  Last nights figure of 539K jobs lost was indeed an improvment on the previous month, but try telling those 539K people that all is well now because less people lost their jobs.  Every week there have been over 600K initial unemployed for months now.  Yes we can say the rate of jobs lost is starting to slow but when are we going to see a positive number?  No matter what the talking heads say it is the consumer that drives the US market, and while the consumers are loosing jobs don’t expect any sustained pickup in the US economy.

The other item that has transfixed the matket is the stress test results on the 19 major financial institutions.  Relief that is not as bad as it could be still does not hide the fact that GMAC needs to raise $9.5 Billion, ailing banks need 75 Billion, Fanny Mae needs 19 Billion. Already we are talking over 100 Billion, where is it all coming from?

This headline story from Market Watch lighlights the madness in the market – “The stock market has for weeks been dogged by talk of trouble lurking in commercial real estate, yet an exchange-traded fund of commercial property companies has rallied 50% in the last two months — despite commercial mortgage delinquencies hitting 11-year highs in April.”

We have not heard much from the Chrysler bankruptcy court this week.  GM is looking like it too will be joining Chrysler in chapter 11 unless some miricles are forthcomming.  Toyota has taken its first loss in 60 years.  I have said before, when you have lost your job, or fear you might, the last thing you are going to do is go out and buy a new car.  At least it is the last thing I would do.