Gross day yesterday but a gap to the upside today.
Futures turned up when China eased overnight…again. Also, news of ANOTHER trade meeting even though everyone knows there will be trade meetings.
The big economic story is a MUCH MUCH MUCH better than expected employment number as we are being told more than 300,000 jobs were created. This is an outlier number in comparison to the norm. The past couple of times this happened, the next month was soft…but we shall take it and not throw cold water on it.
The DOW closed 1,900 points below the declining 50 day moving average which is bearishly BELOW the 200 day average…so a further rally to contract that spread is always a possibility. We do not believe the lows of December 26 will break any time soon…but be careful about thinking it is THE low. We are open to anything but…you know the stance.