The market’s getting really peppy about the fact that people are becoming unemployed at a slower rate. It doesn’t sound so great, but stocks seem to be way happy about it. Almost a quarter million people lost their jobs in the US last month, but the Dow’s up another 113 points. What’s going on? Mostly, it’s the fact that the unemployment rate actually dropped for the first time in over a year. Economists were expecting 300,000 last month. They got 53,000 less than that, so they’re all peaches. In the beginning of the year, monthly hemorrhaging was at 700,000.

Strange how trends are so much more important than numbers. Back when the market was at 14,000 in ’07, to think that it would go down to where it is now at 9,370 would have made many people lose their lunch, and probably unable to afford buying another one. But now we’re all happy and snowflakes and euphoric. This is fine with me. I’m not one to complain. The S&P’s up past 1000, the Nasdaq just over 2000, and those are real psychological numbers. And we all know that the market is basically run by the meta-psychology of spectators second and third-guessing one another for a lifetime.

Did I mention that this past July was the best July in two decades for the market? Well, let me mention it. This past July was the best July in twenty years for the market. There. I said it. Oh, and it’s also gained 50% since March lows when we were all freaking out and thinking that the world was going to abruptly end, horribly. I just hope you didn’t take your money out then.

So all in all, people are happy, but economists urge caution. August usually has some surprises ready for people who don’t cover themselves. So be happy, but don’t get drunk on it. Wear some protective gear. Put on a helmet when you go into the Wall Street moshpit.