Hopefully we can end the week on a high note!
We ended last week on a sour note, with our first big pullback in over a month while this week marked the biggest pullback since, as I mentioned Wednesday, the Dow broke 11,000 back in early August.
Asia was positive across the board other than Pakistan, who can’t get it together. Australia, Hong Kong and India set new records on word that China’s GDP should grow another 10.5% next year.
Europe, as usual, has no idea what to do ahead of the US open. The ECB left rates alone but made a hawkish statement that should keep the dollar in check.
6 am: We’ll see what kind of mood Mrs. Jones is in once she sees the jobs report. There are 125K jobs expected with 4.9% unemployment and, at this point, I think we want to see something a little stronger, rather than weaker.
8:30 am: Well, we got a little of both as the jobs were lighter (92K) but there were huge upward revisions to previous months. September was revised up to 148K from 51K – why do we even look at this statistic if it can be so innaccurate?
The numbers are truly spectacular considering how many consruction jobs were lost!
We held our market levels yesterday (barely) but the SOX and the transports both fell below so let’s just say any index in the red is a bad sign while we need to see the SOX retake 453 and the TRANQ retake 2,567 or it is time for cash once again.
Defying all logic, oil is being pumped up in Europe after trading flat in Asia overnight. We are still watching the $58.56 upside level and, if it sustains a break over that, I don’t think I want to hold November puts into the weekend.
Oil is down 10% for the month of October, following a 10% drop in September which followed a 10% drop in August – I’m not even going to bother discussing how ridiculous it is for energy companies to be near their highs!