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

Futures spike up on central banks

November 21, 2014

S&P 500 futures are up 0.8 percent, but Europe is leading the charge with a move of more than 2 percent. Central bankers in China and Europe fueled the moves.

SPX

Quiet agenda before Thanksgiving

November 21, 2014

Today's calendar is empty, followed by a busy week heading into Thanksgiving next Thursday. The only items are quarterly results from Foot Locker and ANN.

SPX

Stocks pull back on weak global data

November 20, 2014

S&P 500 futures are down 0.4 percent, but the losses are much sharper in Europe. Australia was the only big mover in the Asia-Pacific region, with a drop of 1 percent overnight.

SPX

Economic, company news on tap

November 20, 2014

Initial jobless claims and consumer prices for October get the ball rolling at 8:30 a.m. ET. Best Buy, Dollar Tree, GasLog, and JinkoSolar announce quarterly results before the opening bell.

SPX

Stocks hold firm before housing data

November 19, 2014

S&P 500 are little-changed, fighting back from modest losses earlier in the morning. Italy and Germany are the biggest movers across the Atlantic, while Asia was moderately lower overnight.

Premium Services

Webinar Playback

eSignal "Back in Black": Multi-Speaker Free Webinar

Education & Strategy

Some things aren't what they seem

As we scan the Heat Seeker, Depth Charge, and other option-tracking systems, we sometimes see heavy activity in calls and...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER