Factory Orders for September were up .8%, slightly higher than estimates. This is the fifth increase in six months for this number.

While not of major significance in terms of its impact on the markets this is nevertheless good news as it is furthers the thesis that the economy is out of recession and has entered its growth phase.A theme i have been preaching since March of 09.

It's all hanging on Friday's NFP now.
By now everyone should be aware that on the first Friday of every month the BLS releases the employment numbers. The most important of these is the net change in Non Farm Payrolls.

It is considered, besides the ISM survey, one of the most accurate and most important economic releases produced. It has the capacity to move markets- along with my comments of course.

NFP has been falling every month since January of 2008. The losses grew each month until the bottom was reached in Jan of 09. Since then the trend reversed and the job losses have grown increasingly smaller each month.

On Friday this trend must continue. If it does the market has smooth sailing for a while. If it doesn't, then we are in for some trouble.

Good trading,

Thrash Man