Futures are slightly up today but the big news comes at 7:30p from the Jobs Report. I think that could control the market, either way. As for the S&P, the RSI is above 50 but not over 70, which shows great strength and NOT oversold territory. My personal indicators show we are overbought but from a technical perspective, we could go to 875.
From the long side, I like Energy, Basic Materials, and Commodity based firms. I like ERX, CVX, COP, FCX, PCU, AA, FDO, DLTR, and AMZN. Stocks under $5, with fair risk/rewards are TLAB, CIEN, and possibly CENX, if you like to take some risk. As for financials, I think they can pause soon, hence my short position. As for option activity, there was some heavy call buying in C around the $5 strike.
From the short side, SRS is really attractive at these levels.
Be back with some posts later, good luck.
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Jobs report for March came in line with expectations (663,000 loss), but downard revision in January was unexpected. Those numbers revised down 86,000 to 742,000. Futures were up after initial March figures came in, and dropped after January revisions.
ReplyDeleteAs far as RF's market movement synopsis - I tend to agree for a retracement. We still have first quarter earnings and the GM crisis to get through before everybody should start giving high fives on the long side.
Once we are looking positive for a prolonged upside period, I LOVE COMMODITY plays. Commodities have been CRUSHED as a result of the downturn. Here are the firms I am looking to rip:
AA, ACH, COP, CENX, and USAP (micro cap dice roll) will be ready to roll.
CENX up 14% - that thing is on fire. Reason is simple, RF predicted it! haha
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