Full steam ahead
A day early thanks to Independence Day, the weak US jobs numbers could have kicked off a well-deserved correction. But Mister Market, a fan of excess in all its forms, decided otherwise.
The US economy is creating fewer jobs? No problem. In a market this upbeat, bad economic news quickly turned into good financial news.
If the Fed was looking for an excuse to delay a rate hike and justify an inflation rate still well above its 2% target, here it is on a silver platter.
Right after the release, the odds of a rate hike before year-end took a hit (24.1%), while the status quo scenario regained its shine (75.9%).
My trading plan
After trapping the short sellers on June 26, missing the symbolic 52,000-point mark by just a few points [1], Dow futures went hunting for their stop-losses in the killzone above the 53,093-point resistance [2].
Closed Friday for the holiday, the US index will try to keep the momentum going today, but it could run out of fuel before climbing higher.
Given that, I’ll lean toward bearish trades if price falls back below the 53,093-point resistance.
Happy trading!
Maxime holds two master’s degrees from the SKEMA Business School and FFBC. As founder and editor-in-chief of NewTrading.fr, he writes daily about financial trading.
Running on fumes
No miracle
Counting chickens