Yesterday’s comments about taking a trade were correct about the initial reaction to the NFP. The weak jobs data and initial euphoria about the Fed stopping saw a nice pop.
However, anytime a market starts strong and rolls over, we take that as a sign of continued weakness. While I still think we can see some upside before September, this present action is none-too encouraging.
A few of you bought yesterday and sold into strength. Congrats!
Some of you have been waiting to buy, and it looks like the market is going to give you a chance to buy cheaper. Be patient, now that today’s rally has rolled over, and let the market come to you.
Finally, if you bought yesterday and are still holding, stick to your sell discipline and follow your stop loss strategy (Even if that means taking small loss today). You can give the markets a few percentage points, but recognize that the action today — unable to maintain a positive bias — does not bode well for the near term.
More to come next week . . .