With the expected release this Friday of a whopping 190,000 non farm
payrolls added, it is no surprise that some investors are considering
economic recovery and the accompanied rate hikes. The following image from today's MarketWatch home page expresses this idea
clearly:
This leads me to think that this Friday is initially a win-win for the stock market; both prospects
of economic recover with positive news, or continued loose monetary
policy with negative news may initially boost the market. Given that on
this report the the trend usually reverses, if the market does react
with a surge of strength, I believe it will be a short term top. The
tricky part for a trade is that the stock market is closed on Friday. Let's hope strength spills into Monday's open for a short sell.
Refer to this prior post on the importance of the Fed to capital markets.
PLEASE NOTE: DISQUS IS DOWN AGAIN (big surprise!).
