Just a quicky tonight folks.
I will be socializing so I don't have much time.
Interesting day today wasn't it? Kinda played out like I said but I must admit I am surprised it did after seeing a -530k print on the jobs report.
I had been noticing that the market was starting to ignore bad news earlier in the week after Monday. Lets face it folks, there is no fundamental reason to like this market. However, market retraces after huge selloffs are not uncommon. In fact, they should be expected.
The market traded very technically today. The bulls were able to successfully protect the 815 level on the S&P. Once we bounced off of there I figured we might end up positive for the day.
Bear rallies always rear their ugly heads in every great bear market. We saw a a huge correction in 1929 before once again touching new lows in the 1930's. I still hold the thesis that we could very well see a nice bull run through the holidays.
That's not to say we won't get creamed here or there for a day like we did on Monday. It would be silly to assume we go straight up from here.
Take notice when stocks begin to shrug off bad news and move higher. I saw a ton of this kinda price action this week. Goldman was a classic example of this after announcing it will report a loss.
This is where I am focusing in the short term folks. There will be plenty of bad news in the oncoming weeks that will allow us to see if this type of price action is a trend. If this "denial" by the bubbleheads continues, we could see a nice run on the long side because the bulls will start to gain some confidence.
Also ask yourself this question: If a -530K monthly job loss report can't push the market lower what can?
I will have more on this tomorrow. I need to run for now.