Two America’s

This week of reports will be headlined by the employment report on Friday.  Today’s ADP preview was in line with tepid estimates.  It must be kept in mind that governments are continuing their layoffs so the actual employment number will no doubt be a ho hum figure that will be shaded by efforts to reduce the number of employable people and thereby keep the unemployed percentage declining.  Sentiment reports show the overall effect.  Pundits are trying to pin the drop in sentiment on Japan and oil prices, but my view is that something bigger is developing.

On the other hand the stock and commodity markets are hanging on to their free money, QE2 and zero interest rates, in a last gasp at trying to breakout of the trading range as they press the upper limits.