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Bank of America (BAC) lead way with a hefty price gains boosting the entire banking sector. Semi-conductor stocks don’t appear to be that far behind with Intel (INTC) leading the way. The day did not start off too well for stocks, but with the Dow taking the brunt of the selling. Volume ran high throughout the day indicating institutions were involved. Steady buying after the morning sell-off with the NASDAQ leading helped elevate the entire market. Today’s move was a good strong move for the stock market. Now, we’ll need to see market leadership expand.
Today was the first real clear indication of accumulation in quite some time. Take away options expiry and end of the month rebalancing we have yet to have a real indication from institutions they are buyers. Today, we got a glimpse there was some buying today amongst institutions a sign we have been waiting for. Now, can we get through tomorrow’s job’s report?
It is our favorite time of the month for the stock market, it’s the Jobs REPORT! How much can the government manipulate this time? In all honesty, I would love a real number and for that number to get better for this country. However, all government numbers are geared to make things better than they appear. Therefore, I have very little confidence the number published tomorrow will be anything close to reality. With that said, it really doesn’t matter what the report is or isn’t, but the reaction the market makes. We care about price and volume rather than if we think the jobs report will be better or worse.
There are plenty of positive signs emerging from this market. A negative is sentiment with the AAII bulls pulling in a whopping 49% of the survey. VERY high for this market, but remember sentiment isn’t exactly a great indicator. I will say January tends to be a tough month for stocks and the same can be said for February. It would not surprise me to see some type of pull back despite the positive underpinnings of this market. Regardless, we trade what we see and not what we think.
Have a great weekend! Remember, always cut those losses short.
