Stock Market Analysis

Thursday, September 03, 2015

Cautiousness ahead of Jobs Report...

US market closed sideways today again ahead of tomorrow's highly uncertain jobs report. Even though the Jobless Claims numbers in the morning turned out to be extremely disappointing, continuing in the recent trend of deteriorating economic numbers, there were still traders willing to buy into this short term oversold market, allowing the market to open higher. Of course, we all know by now they all became food for the smart investors and traders selling on the strength. As I have suggested all week long and also on Tuesday to paid subscribers, every bit of strength in this bearish inclined market is an opportunity to put on new shorts / put options, not to put on new longs / call options.

The bearish sentiment today was clear with bond yields dropping in response to investors reallocating back to bonds from equities and total equities put call ratio persisting in the bearish region.

Consensus is expecting a gain in non-farm payrolls for tomorrow's Jobs Reports and even though economic numbers have been disappointing lately, tomorrow's jobs report might just meet expectations going by how the headline number have generally rebounded after two consecutive lower months and the number has already made two lower months so far. This should give a much needed break for the market but going by the bearish inclination in the market, it is more likely going to just make the bears happy in accumulating cheaper shorts.

Market Crash Timer: ORANGE

For now, the market remains in short term neutral trend within an intermediate bear trend and primary neutral trend.

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