Yra Harris: Don't Get Caught Chasing Momentum

Yra Harris thinks traders are catching a breath going into this Friday, avoiding chasing the momentum and weighing whether a better value can be found elsewhere. He weighed in on CNBC's Squawk Box this morning, at a time when futures are sharply down. Asked whether markets are treading water until Friday, when a jobs report will either confirm or weaken the bullish thesis of a strengthening recovery of the economy, the Praxis Trading principal thought investors are right to pause and evaluate their options. While he thinks there is room for continuation on the already 25-27 percent move upwards in equities markets, Harris believes there is a real risk of investors getting caught chasing this momentum, especially in the wider global context. While he believes a strong jobs report will provide markets with the right signal to continue in the short term, there are other global considerations, such as upcoming French elections. Held in April and May, they will confirm where Europe is headed with regard to their degree of commitment to see their current voes through. That said, Yra Harris believes a significantly-shrunk unemployment rate on Friday, backed by another strong non-farm payroll number will poise markets to create higher highs on increased confidence of liquidity, growth and traction in the US economy.