NFP Number

I mentioned earlier that retail will love the NFP number, "Recovery!! Whooppee!!!", but Wall Street will have a different take, "Does this mean you are going to raise rates, we don't get free money to put into risk assets and therefore actually have to take risk" as well as the fact that draining liquidity from the market will also mean that Wall Street will have to unwind the massive leverage they've been utilizing, which means selling.

Another Reverse Repo was conducted today to drain $1.8 billion in liquidity which is really a drop in the ocean, but it's the 3rd time this week. So what's the Fed up to? You might think that they are sending signals to the market, but it seems this fed is so full of leaks that Bernanke is more likely just to call Jamie Dimon, Bill Gross and about 42 Primary Dealers and just tell them, "We're draining liquidity, act accordingly". In fact, it wouldn't surprise me if those calls went out about two weeks ago.

In any case, the NFP number is not the good news that most retail would think, at least not for the market right now which has been on a sugar high of FREE!!!! money.