Friday, August 3, 2012

Job Report Gets The Bulls Going

Wow, what a reaction to a better than expected job report. Indices were up 2% to almost 3% intraday for small caps (2.4% at the close)! S&P500 and Nasdaq are making new highs and the Dow is close to new highs as well.

Mind you, price is still trading in these big ranges or flags for two months now (see daily charts). The exception of course is the Russell2000 aka small caps. Until we break these flags, I don't think it's time to go aggressively long or short.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro had a big move down yesterday, but an equal move up today - bottom to top, top to bottom.
The euro gained 1.5% and is trading close to the 1.24-level. It seems that investors think the worst has happened to the Eurozone (unless of course a new wave of bad news arrives).

Gold was underperforming, but copper and silver were up with the indices, both gaining over 2%.
But what about oil, gaining +5% intraday and closing near the highs!!

Have a great weekend!

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