8:20 am EST The all-important jobs number is yet to be released in a couple minutes, but I am going to get started writing right now. There are a couple of factors to look at in this market. First there are a lot of stocks out there that are getting close to their recent highs. This makes for an inflection point in stocks. If we break above those highs, we could be off to the races. If those highs hold, we could be looking at a short term double top and bearish action coming.
467k. That was the jobs number. The market will NOT like this. I have a hard time believing that there is a lot of big money out there today to support this market today. I think we should float lower for a good part of the day. We may see a little bit of strength later in the day, but there should be a good amount of selling today. It looks like we will not challenge the highs in the next couple of days.
All of that action is going to keep me on the sidelines at least today. I am hesitant to get long if the market is going to weigh on my long positions. I need some confirmation of a continued rally to jump in with longs.
A quick word on the Merck (MRK) trade. I didn't end up putting the trade on yesterday and I am glad I did. While it did get to the $28.20 buy target I originally had, there was little volume to make me feel good about the trade. I have given it a couple days and it refuses to go higher. I am certainly not getting long with this market. I think the stock has told us that it doesn't want to go higher right now and it wants to correct.
Have a great fourth, buy some puts, and until next time, stay low risk..
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