Yes, that is a long title to this article, isn't it!
Who is having fun in these markets! You have to love a market that reacts to news, moves too far and then retraces. I haven't said that mouthful in one day in a long time. Until a few weeks ago, it has taken months to complete that sentence. I will break it down:
**a huge miss in the non-farm payrolls as more jobs are added
**a market that reacts to it and jumps up and then, oops, are things really that rosy?
**retracements as the marets moved too far
These are great markets folks! You should be taking advantage of them!
Let's first talk fundamentals and then take a look to what's coming up next week regarding those fundamentals and then we can fly into the charts.
Non-farm payrolls came through. We had initial claims pointing to a lower than expected report, but then, somehow, we blow expectations out of the water. Doesn't make sense to me, but let's go with it. BUT, I think in 4 weeks, there will be a lot of tension, especially if the markets are at new highs, which, wait for it....puts an emphasis on the economic calendar. Yahoo!! No, not the stock, just the excitement!
Earnings are for the most part behind us and we are getting closer to summer. As I said earlier in the week, if we are at or near highs, it could be a low volume, leak to the upside as we have seen during past slow periods (last summer, the summer before and Christmas time).
Next week, we have:
**retail sales (should be supportive according to what I see out and about)
**Bernanke and
**CPI - could CPI give us an inflation scare?
To the charts and let's look at the SPY. I don't care how high we got as I was selling that rally by buying the dollar. So that high is resistance and it comes in at 61.8 - let's use that for local resistance with local support at 1330ish.
Hey, let's all buy commodities. No, that is not a recommendation, that is a segway to the next chart: Silver (SLV):
As they say in Bravehart, hold, hold, hold hold, NOW! What do you think?
To our socially responsible play: Ford (F). Got to love the trendline - who can argue with 10 to 20 percent moves in the stock - imagine your option you savvy option traders!
Into the forex realm we go and as I said at the beginning: moves, countermoves and counter-counter moves.
Let's start with the DOUBLE FALL LINE TRADES:
And onto the BUFFALO BOUNCES:
Let's hope the economic calendar gives us enough surprises and let's hope the volatility stays in this range. Remember, we still have 2 full weeks left until May options expire and the SPY is only 30 points from its high - that could happen Monday morning.
Local Tip: Inter-Market Relationship Webinar on Wednesday
Happy Trading, Be Environmentally Cool and Have a Safe Weekend,
Coach Brian
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