Oct 2 Bad Jobs Report Bull Market Update and Stock Scan

Oct 2, 2015: 2:46 PM CST

The Jobs Report was worse than expected so let’s buy stocks because the Fed won’t raise rates!!!

That was the logic behind today’s bullish market recovery on the news that the monthly Jobs Report was worse than expected.

Logic or illogical, that is the ongoing reality of our new stock market environment.

Let’s update our levels and plan the remainder of today’s session:

In-depth analysis is always provided to members of the Premium Daily Reports – I hope you’ll join and benefit.

Here’s a quote from last night’s member strategy planning report:

“With the end-of-day rally taking the @ES back to the underside of the 38.2% Fibonacci Retracement area, we’re ultimately right back where we started yesterday with our game-planning.  We’re again cautious/bearish as price trades down away from 1,920,”

While that analysis was correct with the outcome of the downside opening gap, price rallied up off our support target of 1,900 – a Round Number reference.

As soon as the selling from the worse than expected Jobs Report subsided, buyers stepped in, realizing that the odds of a Fed Rate Hike in 2015 decreased greatly on the news of the weakening economic data.

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Let’s see what our Breadth Chart reveals about current market strength (or weakness):

With the exception of the Financial Sector, all sectors are strong today and above the 80% Breadth line.

Two sectors – Materials and Energy – have 100% Breadth readings of strong money flow.

When sector breadth is this strong, the message is to get into the market and buy with the money flow.

Here’s a top-level or full-perspective view of today’s S&P 500 stock performance (courtesy of FinViz.com).

Here are today’s strongest trending (intraday) names – candidates for pro-trend continuation:

Carrizo Oil & Gas (CRZO), Wynn Resorts (WYNN), CaesarStone (CSTE), and Yahoo! (YHOO)

Bearish downtrending candidates include the following stocks from our “weakness” scan:

Toronto-Dominion (TD), CME Group, Manpower Group (MAN), and United Continental (UAL)

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

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Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

2 Comments

2 Responses to “Oct 2 Bad Jobs Report Bull Market Update and Stock Scan”

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