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Thursday was not a quiet day on the news front. Elon Musk fired a shot across the bow, and President Trump took the bait, hook, line, and sinker to mix metaphors. The market responded by selling Tesla (TSLA) very hard, which reversed early gains in the Nasdaq 100 and S&P 500. Think you can guess my next comment? Ignore geopolitical nonsense. Follow the data.

The stock market was poised to pull back. The S&P 500 got within a whisker of 6000, which is the level I wanted to see before some weakness set in. The Nasdaq 100 is below, and you can see the red candle on the far right, meaning that the index opened high and closed lower. Conventional wisdom says there is more downside ahead.

I continue to view the Russell 2000 Index of small caps below as an interesting opportunity. Again, I have tire marks all over my body from being run over so many times trying to trade this over the past 15 years. I have learned some lessons and now curtail my position sizes until further notice. Small stocks seem poised to play catch-up this month, and we have bought some ETFs in the space. Of course, I will babysit this and try to keep losses quick and small. But the index and many of the ETFs are positioned for a run towards that horizontal blue line. We shall see my friends.

We do have the monthly employment report at 8:30 am, so that is usually a market mover. I believe the market is in the regime of good news is good news and bad news is bad news. I think a report with 125,000 to 150,000 new jobs or so will be Goldilocks and met with buying. Right now, I am apt to sell the rally if I had to trade.

On Wednesday, we bought more DOW and more MRK. On Thursday, we bought PDBC and more DWAS. We sold RECS, some MQQQ, some QLD, some QQQ, and some VGK.

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