We lost 500K jobs, yippee!

Posted by downtowntrader | 1/09/2009 09:32:00 AM | 0 comments »

This morning the jobs report came in at -524K jobs and it seems like some were relieved it wasn't higher. While it is good news that it wasn't 600 or 800K, the fact is that the economy has lost a lot of jobs over the past few months. Some were expecting a rally if the number was low enough, but I think the markets are ripe for a deeper pullback. I don't think a we are headed for a low retest yet, but several indicators are telling me things are overheated. We could see a move back to the 50 ma on the Nasdaq and Russell, were the markets should find support. This doesn't mean I will buy there, but it's a logical place for support. In short, it's probably not a good time to be pressing the action, but I'm leaning a little short on financials and miners. I'm still open to a bullish scenario unfolding into the inauguration or even beyond, but I would prefer lower prices before positioning myself more aggressively.

Good Trading,