20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
In March, the U.S. labor market surged beyond predictions, with 303,000 nonfarm payrolls added, surpassing expectations of 212,000. This marked the highest figure since May 2023 and accompanied a slight decrease in the unemployment rate from 3.9% to 3.8%.
We covered it first here: US Labor Market Heats Up In March: Payrolls Grow By 303,000, Highest In 10 Months, Dampen June Rate Cut Hopes
The robust report dashed hopes for Federal Reserve rate cuts, exacerbated by hawkish comments from Fed speakers, further dampening investor expectations.
The unexpected decrease in the unemployment rate from two-year highs and the anticipated rise in earnings signaled a tight labor market also reinforces the Federal Reserve’s stance against immediate interest rate cuts.
Economists Insights: March Jobs Report Dashed Hopes Of Rate Cut
The March jobs report has elicited diverse responses from economists and market analysts. Let’s delve into their viewpoints, capturing their original statements or key phrases to provide a comprehensive insight into the implications.
Joseph Brusuelas, Chief Economist at RSM US LLP, recognized as the best rate forecaster of 2023 by Bloomberg, shed light on the policy implications of the report. With wage growth slowing accompanying topline employment increases, Brusuelas sees the Fed relaxing a restrictive policy rate, given the PCE deflator continues to improve.
Market Reaction: Stocks And Dollar Gained, Bonds Fell
Treasury yields soared, with the 10-year yield surging above 4.35% and bonds fell. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) was down 0.95% while the iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) was down 0.44% by 10:50 AM ET on Friday.
U.S. equity, as represented by the SPDR S&P 500 ETF Trust (NYSE:SPY) was up 0.85% while the tech-focused Invesco QQQ Trust (NYSE:QQQ) had gained 1.14% by 10:50 AM ET.
The U.S. dollar gained, with the Invesco DB US Dollar Index Bullish Fund ETF (NYSE:UUP) up 0.18%.
Read Next: Top 10 US Corporate Bonds By Market Performance In 2024: April Update
Image: Shutterstock
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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