Thursday, November 16th, 2017

Jobs report and another sell off

Jobs report came with 411K Gov + 41K private jobs added. That put the bears in control and the market was gapped down 200 points as usual. If you stop to think for a moment, Bush was losing 500K to 700K jobs a month this report was a honey pot compared to those nasty numbers of 2008 and 2009. President is doing all he can to pull the car out of the ditch Bush and Cheney drove into. He needs to be given a shoulder here, he can’t do it alone.

2010-06-04_SPXI have said over and over again SPX has to close above 1100 and close decisively. This is an area of confluence. Its has 200 day moving average, 38.5% Fibonacci retracements and 20 day moving averages all mingling with each other. This is where Bears have “stop loss” orders sitting, and they will do anything to push the market down below. If the market closes above these orders they will click and pop chitty chitty bang bang and a huge short covering rally will ensue.

We are not sure if this will happen. Today’s jobs report was good enough pretext to sell the market off as if this the end of the world. Apart from the jobs report fundamentals of US economy are all improving rapidly in every aspect. To hold this market off underwater any longer, is difficult at best.

Lets not forget whats happening behind the curtain.

Wall street is apparently not succeeding in killing the Financial reform bill that is being reconciled and may get to Presidents desk in next few weeks. That frustration is showing up in nasty sell offs in the charts. Its market psychology 101, if I am feeling angry and depressed and pissed off at the world and my business being regulated, would I be buying stocks and adding to my portfolio and building good looking charts ? That hurt and anger would result in negative consequences which we have seen all over the charts this year. Wall street’s first knee jerk reaction- Sell off everything take their money and put the little people in the dirt. Its been always that way, and it will never change.

But at the same time, these big traders never kill the markets off completely! They just will never do it, cause they will be out of a job taking your money and running with it!

Be patient, we will strike another day.

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One Response to “Jobs report and another sell off”
  1. Everyone loves what you guys are up too. Such clever work and coverage! Keep up the amazing works guys I’ve you guys to our blogroll.

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