Consensus expectations were for 125k new jobs to be reported. We got 18k. To make the report even more disappointing the last two month's numbers were revised lower.
Here's the good news for traders. There is no better way than to test the resolve of a bull move than bad news that is also worse than expected. We got it.
We've experience an extraordinary run up in the last two weeks. Until that run up is tested we're trading in an market exuberance state that is simply unsustainable. In such a state a good news causing a massive gap higher is (was) a real possibility and on top of the run we've had that would not have been good for the markets or traders for any longer than a drug addicts quick fix.
We'll have to see how the markets trade relative to OR 's for the immediate game plan, but the big picture which is reflected in the stocks below is this:
1. strong stocks falling into good support are long candidates. In our case that means they are over a positive 50 day MA at a minimum
2. strong stocks that have rallied up into a negative sloped 5o MA may be the "strong stocks to short". ie. BA, WHR, SINA.
3. Weak stocks on the short list are worth shorting but need to be very vigilant of the condition where markets focus on selling strong stocks not weak ones. This would indicate a hidden level of bullish confidence on weakness.
~Long Focus~
CELG
POT
~Other Long Charts of Interest~
UNH
AET
ILMN
AMZN
PLCM
NFLX
VHC
POT
CPO
RHT
HAL
TSLA
BEAV
CRM
BIIB
HAL
BIDU
ALTR
XLNX
VMW
NVLS
BWA
~Short Focus~
WHR
MOS
MTL
SMG
SINA
~Other Short Charts Of Interest~
CREE
LRCX
MHS
VECO
SNDK
BA
DE
