Friday, December 5, 2008

Jobs? Where We're Goin We Dont Need Jobs

OK sort of kidding there in the title but hey you gotta love when the market shrugs off the worst jobs report since the 70s. It's quite hilarious to watch all these nuts on CNBC questioning how irrational the market is when it reacts so positively to bad news. Hello?! Earth to Bubblevision. You people are a work of art, lol.

To those of us who actually analyze the markets objectively each day it shouldnt have been too surprising that the market has reversed course throughout the session today and raced higher in the face of 533k people losing their jobs in November alone. Yeah its bad news I know, but the fact remains that markets are, and always will be, discounting mechanisms which price in future expectations. They did just that yesterday when they sold off before the bell. Of course the volume could be stronger going into the weekend here but I'm sure the bulls will take it.

As I type we are now making new highs on the ES futures up at 870. I would continue to watch for resistance in the form of the gap fill from Monday up at the 877-882 area. I would expect a pullback from that level whether it comes today or Monday. But it really does appear we are poised for further strength in the coming weeks. Price action tells it all. Respect that.

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