It is no big surprise this week’s employment data will be heavily scrutinized. Today’s release of the Federal Reserve’s beige book helped boost the market to begin June on a positive note. Thursday’s ADP report will be watched closely. Will it foreshadow’s Friday’s job report? The real meat on the bone is price action and we continue to remain in an uptrend. Until proven otherwise we will continue to push ahead.
Most believe Thursday’s ADP will signal the strength of Friday’s job report and subsequently whether or not the Fed will go ahead with a June hike. Futures are indicating the odds favor a July hike. A really big mis may indicate July could be off the table. Luckily for us, we can simply follow our process and avoid having to figure out every single scenario!
Financials are big beneficiaries of higher interest rates. It will be interesting to see how the group reacts over the next few sessions. For now most are hanging around key points, but need more time. Wait for proper signals and do not force trades.
Stay focused and steadfast.
