We are another day closer to the most important Job report ever. Today’s session started off well only to see sellers take over and it looked like we were heading for a day distribution. Volume ran hot for the entire session. A late day rally saved the market from a day of distribution and we continued to consolidate the post Brexit rally. This market is giving off the impression it wants to make more all-time highs. While it is anyone’s guess where the market will head next, but all indications point towards more highs.
Tomorrow the ADP employment report hits the market and many will be looking to see what the number will show. Most will want to tie it directly to Friday’s number. If the ADP number is big so will Friday’s number. Does a big number Friday signal the Fed is about to raise rates again? If so, how do equity markets react? You’d think the dollar would rally and commodities fall. Seems logical, but what if we are wrong? What would we do then? Have a plan and execute, but more importantly focus on price. Let’s not get into guessing how the market will react.
Solid day in the market and we will continue to operation on the long side of this market. There is no need to get off this train just yet. Keep cutting losses and ride your winners.
