After setting the 35th record high in the SP-500 this year, all eyes will turn their attention to the Employment Situation number released an hour before today’s open. Analysts estimates target 702,000 new jobs and a 5.6% unemployment rate as companies rush to fill open positions. After the reaction to the data, don’t be surprised if the volume quickly declines and price action becomes light and choppy as computers shut down and fireworks begin to light up for the 3-day weekend.
Overnight Asian markets traded mixed with Hong Kong falling 1.80% by the close. Across the pond, European indexes cautiously inch higher this morning, waiting on the U.S jobs data. With bullish anticipation, U.S. futures try to inspire more buying as they trade with modest gains across the board. I wish you all a safe and wonderful weekend as we celebrate Independence Day. Let’s all take a moment to reflect on the sacrifices of those that came before us to win our freedom and those standing in harm’s way today protecting us and ensuring that blessing!
Economic Calendar
Earnings Calendar
The Friday calendar is a light one with just five listed companies and only one verified report coming from WTER, which is not particularly notable unless you happen to own the small-cap stock.
News & Technicals’
According to reports, a new Tesla Model S Plaid caught fire while operating with the driver behind the wheel. Apparently, the driver noticed smoke coming from the rear of the car and had to force his way out of the vehicle because the locks malfunctioned. The fire required two firefighter crews more than three hours to put the fire out. Billions of venture capital dollars flowed into online grocery start-ups in 2021, attempting rapid delivery services. With more than $10 billion invested in all the start-ups, some suggest the sector is now overcrowded. We have a new space race underway with Richard Branson aiming to beat Jeff Bezos to space with plans to launch his own Blue Origin rocket on July 20th with himself aboard. Micron CEO sees immense growth ahead for semiconductors as electric vehicles become what he called ‘data centers on wheels.’
Today is all about the Employment Situation report with analysts targets of 702,000 new jobs and the unemployment rate falling to 5.6%. The question to be answered is if that will keep the bulls engaged, or will the bears see that as a sign of an overheating economy? There is no doubt that the bulls are in control, with the SP-500 setting its 35th record high this year! With the FOMC continuing to print, the melt-up continues even as the Absolute Breadth Index continues to decline. A growing number of analysts and large investors warn of a substantial correction, so don’t become complacent but stay with the trend as long as it lasts. After we get past today’s reaction to the jobs, data volume is likely to drop like a rock as everyone’s attention will turn toward the 3-day weekend. I wish you all a safe and happy 4th of July!
Trade Wisley,
Doug
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