Thursday, July 5, 2012
Good Jobs = Bad News
The market needs QE3, it is a junkie. ADP came way above expectations, and nonfarm payrolls will likely at least meet expectations, after underperforming ADP for the last couple of reports. But this only makes the Fed less likely do to QE3. Of course, this is assuming that prices stay the same. If the stock market goes back down near the put strike, 1250, we will get the Fed panicking into QE3. So higher, we don't get QE3, lower we do. So we'll probably have to go lower because this market is not self sustaining, it needs QE to sustain higher. 1370-1375 is a strong resistance area, offers great risk reward short.
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3 comments:
Pretty big sell off at EOD and after hours. Gap down tomorrow? ..and does it continue...
mirrors my POV, from TT: "Most of the bounce was AAPL driven. And AAPL intraday looks silly overbought. Looks like the whole Europe has piled into it as the last safeheaven stock on earth."
Banks sold down hard, GS -3%, JPM -4%
The market looks toppy, it looks like we won't make it to 1380. Early next week should be the end of this rally.
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