Good Friday morning. I’m out of the office this morning so this will be a bit brief. If we don’t have a follow-up VRA Letter today, please join us for our VRA Investing Podcast after the close.

This mornings jobs report may have seemed hot at first glance but the markets sure aren’t taking it that way.

Futures have reversed from lower across the board to gains across the board, with small caps leading the way higher (again) with 1% gains in premarket trading. Keep buying TNA (3 x R2K ETF).

February saw 275,000 jobs created vs estimates of 200,000. Based on this number alone it would seem like a hot report, however last months revision lower was sizable and the official unemployment rate rose to 3.9% (vs estimates of 3.7%). Wages grew at 4.3 y/y…another sign that wage growth and productivity remains above trend and healthy.

As always, its the bond market (and interest rate derivatives) that tell the real story. On the news, 10 year yields continue to ratchet lower, sitting a...