Watching the initial jobless claims to set the open $study

Around the Globe

    Asia – CLOSED

  • Shanghai (China) +0.07%
  • Hang Seng (Hong Kong) -0.28%
  • Nikkei (Japan)+0.31%

Europe as of 7:02am EDT

  • DAX (Germany) +1.20%
  • FTSE (UK) +0.56%

Today’s Economic News:

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    Despite some weaker numbers out of the UK, Europe is having a good day and the US is poised to open higher.  Non-farm payrolls will be today’s catalyst.

    Quote of the day:
    Famous remarks are very seldom quoted correctly. – Simeon Strunsky

     

    Current Allocations from our room:

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    Performance Month to Date from our room:

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    Current Breadth Readings:

     

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    Breadth has weaken over the last two days, but not enough to concern us or shake us out of our Buy The Dips mentality.  We think the market is staged to go higher here.

     

    ES SP500 Futures Comments:

     

    There is so much going on in this chart, and there is plenty of clues to justify anyone’s market outlook.  Bullish, bearish or neutral.   The market has a decision point at 1402 area if it wants to continue for new highs or fail and form a right shoulder with a 12 point head that would fail to 1379.  So far our exhaustion looking top at 1411 is a lower high and is not boding well for the bulls.  Don’t forget the seasonality “Sell in May” adage. All kinds of reasons to be bearish.  The bulls have wind beneath their backs, but it has turned into a breeze and it is decision time.

     

    We spend much time studying breadth trying to discern the underlying sentiment of the market, taking a wider view, in other words, how do the charts on all 3,000+ stocks look in comparison. That is what breadth is.  We think there is still momentum there, and that keeps us bullish.

     

    Our buyzone today is the same as yesterday and that was perfectly placed.  Our sellzone remains at the 1425 area.  It is all about jobs for the next two days so the market may not be able to make much headway today.  Europe is having a nice day.

     

    Let’s make a bullish check list:

    • Take 1402 and break the right shoulder pattern
    • Take 1412 and put in a higher high
    • Take 1417.75 out the 4/2 high
    • Take out the highs at 1420

    We will put together a bear plan tomorrow and cross each off the list.

    For today, Happy Trading.

     

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    US Dollar DX Futures CommentsSurprised smile

    Our dollar continues to run from that neckline bottom with upside trendline resistance at 79.50 area, that would be a bullish break if it can get itself up and over.   A good jobs number could do it. image

    TLT Twenty Year Bond EFT Comments:

    TLT is getting quite boring as we have traded in a tight range we call 118/116 for almost a month now.  This remains our number one concern for the ability or the bulls to break out and extend the current rally to new highs.  With out a break of the 116 the markets should remain capped.

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