Good Morning Friends and Happy Friday!
This has been an interesting week in the market with several contradictions. First, we have had Dow continuing to surge higher while the QQQ decided to embrace a bearish stance. The SPY and the IWM have been displaying weakness at the highs but the selling has been tentative. Oil which had started to show signs of bearishness suddenly flipped bullish on the news that OPEC will finally cut production. Economic numbers have been very positive however that has made the market nervous that the Fed will have to increase interest rates while at the same time fueling many financial companies to reach out for all time highs. What a complex mess we have made of the simple act of company valuation!
This morning we get the Employment Situation number at 8:30 eastern time. The market which would normally want to see job increases is now worried that the number may come in strong forcing the hand of the Fed to act. If the number comes in weaker than expected we may actually see the market respond higher, but if it comes in above 200k as the ADP suggests, the market will likely respond negatively.
One thing to be sure of is that the market will keep us on your toes trying to decipher its OCD issues. I suggest managing the positions your in and avoiding new risk for at least 30 minutes of trading today to allow time for the reaction to the news to subside.
I want to wish you all a fantastic weekend and remind everyone to keep our good friend Olivia in your thoughts and prayers as she deals with her severe health challenges.
Trade Wisely,
Doug
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