And just when you thought that the market was going to recover, unemployment report came in at 3.8 percent today. meaning that unemployment is actually higher than what was expected. But again, in the grand scheme of things, 3.8 percent unemployment is actually not even that bad. Think about it.

That means like less than four percent of the active adult Workforce in the United States Only four percent of them have a job. And let's be honest, we all have friends that how do they even have jobs, right? 3.8 is not bad at all. But again, the way that the Market's digesting this data is based off of uh, let me go ahead and share my screen with you. Uh, 3.8 percent forecast 3.5 Obviously, things were being factored in in advance once this report came out.

uh NASDAQ Market gapped up Consolidated It's so funny because it was bullish pre-market and then right when the Market opens, it goes to being bearish. This was actually all caught in our live trading session. We began shorting the market when Direction became favorable during my live trading again. I Trade live every morning.

If you ever want to tune on in, it's the second link in the description down below. Um, but why? what? What does this mean? 3.8 unemployment for the market. So remember, we're all trying to see this: Through The Eyes of the Federal Reserve And if the Federal Reserve just you know were to take based off of my opinion, higher unemployment means that the labor market is slowing down. And if the labor market is slowing down, it supports that.

Maybe the Federal Reserve doesn't have to be as aggressive with future rate hikes. and I wanted to share this with you because based off of how the Fed rate monitor tool adjusted right, If you guys remember yesterday, we were at 88 of a probability before all of this economic data was being factored in that the Federal Reserve will pause based off of what was reported today. there's a 94 probability that the Federal Reserve will pause on the next Fomc rate decision, which is in about two weeks and five days now. On top of the unemployment rate, we had a handful of different reports being released, but one of the other that is very important is the non-farm payrolls and non-farm private payrolls right coming in at 187 000 with the expectation of 175 and 179 000 versus the expectation of 169..

So those payrolls did not slow down, so it almost is counterproductive in the sense of the unemployment rate, right? But nonetheless, the big Focus for myself at least, was where is our unemployment rate I Know that the Federal Reserve does pay attention to obviously non-farm payrolls, but the unemployment rate seems to be a broader understanding of how our labor market is doing, and as of right now, it looks like it is weakening a little bit. It's not weak like you guys need to understand that anything, uh, even below four percent unemployment is still in the grand scheme of things. Very, very low. and the Federal Reserve understands that.

But if they see that unemployment is going up, then it does support the case that the Federal Reserve can be less aggressive. The really funny part about this is that now that the FED now that the market has a reason to go up, remember it factors these things in advance. So when these things are reported, the market doesn't even react anymore in a bullish way. Because literally for the past three days the Market's been going up with the expectation that all of this was going to happen.

It's so backwards, right? and it's very unfortunate for those that are just getting started that maybe get faked out with all of this. But this is why it's so important to begin to learn first, how the market Works how things get factored in in advance, and then once the report is released, the market will digest that data and either determine to continue to Rally or if it's already factored in, it will consolidate kind of just like we did and then actually begin to retrace And it looks like NASDAQ might actually go into the red today. But I Want to remind you 3.8 percent unemployment is not a bad thing. This simply supports the case that the Federal Reserve can choose to be less aggressive.

but again, no one can predict what Jerome Powell and his colleagues are going to do. So why try to right? Keep it simple? Focus on Direction At the end of the day, you either dance with the market or you step on its toes right? And let's be honest, it sucks when you step on its toes and you try to trade against the market because it will humble you every single time. But I Just wanted you guys to have a little bit of a better understanding on what the unemployment rate came in at and what it means for the Federal Reserve If you have any questions about what we talked about today, please do not hesitate to reach out. It's the first link in the description down below.

Just send me a direct message via Discord or if you prefer to message me on Instagram it's the third link in the description down below. I Hope to see you on our live trading session on Tuesday because the stock market is closed on Monday in observance to Labor Day I Appreciate your time like always. Let's make sure that we're in the year on a green up. Take it easy team.