Learn the trade here. Make it on tradeMONSTER

Options Trading News

September 5, 2013  Thu 9:10 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
What is a good number? That's what I am stuck on right now. I don't know what employment number the stock market would like to see in the government's non-farms payroll report tomorrow.

We know that the bond market didn't flinch yesterday when we saw strong auto sales. But later when we saw a good Beige Book with strong commentary about housing, that started to send bonds down. So do we want a strong jobs number? A weak one? Or do we just want it over with, either way?

When you don't know what number to look for, it's really hard to figure out where you should be. Yesterday saw strength in the cyclicals, some of which is directly involved with good Chinese and European manufacturing numbers. You can therefore take away, at least for now, that good news is good news.

TheStreet.com logoYet I think that anything too strong will just take rates to 3 percent, and while I think that this economy can handle such a jolt, we know that mortgage rates will go higher. We had a nice reprieve this week from a big drop in mortgage applications because rates dipped.

But if we get a strong number on Friday, don't we hit 3 percent, and is it worth waiting until Monday to buy?

One of the reasons that we felt it was right to sell some marginal stocks into strength to raise some cash is that I don't really know the answer to what we want. That means, I fear, the market doesn't know either.

If it doesn't know, then there's not much to game. So we pick at stocks that are below our cost basis, and we wait.
Share this article with your friends


Related Stories

SPX

Cramer: Answering all the critics

October 24, 2014

Wednesday's session was infuriating. The moment this market went down big, it was a terrific opportunity to buy. But so many people offered excuses not to.

SPX

Futures pause after sharp rebound

October 24, 2014

U.S. equity futures are pointing to a lower open this morning after stocks rallied sharply yesterday, recovering losses from the previous session.

SPX

Earnings, housing data top docket

October 24, 2014

The earnings parade will continue to dominate the agenda today. New home sales at 10 a.m. ET are the only economic data scheduled for release.

SPX

Strong earnings push futures higher

October 23, 2014

Caterpillar is up more than 4 percent after blowing out estimates. General Motors, 3M, Southwest Airlines, Comcast, and Eli Lilly are higher as well.

SPX

Jobless claims, earnings top docket

October 23, 2014

Jobless claims will be reported at 8:30 a.m. ET. The pre-market earnings lineup includes General Motors, 3M, Eli Lilly, Union Pacific, Celgene, Comcast, American Airlines, and Under Armour.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER