Non-Farm Friday – It's Next Week That Matters

That is the question that will be answered at 8:30 this morning.  But whether 'tis nobler in the market to suffer the poverty and indignation of the low-paying jobs the economy has been throwing off this year or to take more alms from the DOE – that is indeed the question… 

As I noted in our Member Chat this morning, the quality of jobs we've created has sucked and that is what spooked the market to a 5% drop on last month's report, which only showed 162,000 jobs created and hourly wages were dropping and hours worked were dropping – there's nothing to celebtrate there – even if you do think it means the Fed will keep handing out Free Money for another quarter.  

Our Futures are bouncing around ahead of the data but more or less flat and we're still waiting to see those strong bounces before we even consider picking up bullish plays at these nose-bleed levels:

• Dow 15,600 (ignore spike) to 14,800 is 800 points so 160 bounce (20%) is 14,960 weak and 15,140 strong.  
• S&P 1,710 (where it was rejected) to 1,630 (ignoring spike) is 80 points so 16 bounces to 1,646 weak and 1,662 strong
• Nasda 3,700 (where it was rejected) to 3,600 (non-spike low) is 100 points so 20 bounces to 3,620 weak and 3,640 strong
• NYSE 9,700 (where it was rejected) to 9,300 (non-spike low) is 400 points so 80 bounces to 9,380 weak and 9,460 strong
• Russell 1,060 (non-spike top) to 1,010 is 50 points so 10 bounces to 1,020 weak and 1,030 strong 

 

 

 

 

IN PROGRESS