Stocks Rise as Jobs Friday Nears

A late day slide clipped the day’s gains, but we were able to close higher on the session. Volume ended higher across the board today. Perhaps a good sign we are seeing accumulation? Banks continue to push higher while utilities and real estate stocks suffer. Interest rates will come in focus after we get the jobs number on Friday. Fed watchers will be waiting to see if the economy added more jobs than expected. We are sitting here liking the price action and could care less what the government releases for job growth. This market continues to display positive price action indicating higher prices are ahead. Who are we to argue? Stay the course and continue to manage risk properly.

We do have some hedges on, but for the most part we continue to see positive action from our holdings along with new long signals. Despite the end of day slide, we still have very encouraging action in front of us. Interest rate sensitive stocks are moving like a rate hike coming. A solid job number would more than likely get the market leaning towards a rate hike at the next Fed meeting. It is hard to believe especially with the national debt hitting a new all-time high. Very difficult to raise your borrowing costs when your debt is nearing 20 trillion dollars. Hard to fathom such a large number, but it won’t matter until it does. In the meantime, we’ll stay on our signals and manage risk properly.

Do not make this more difficult than it needs to be. Keep it simple. Cut your losses short.