Happy Friday, everyone. The jobs report came out, and it was relatively strong (forecast is the number on the right, and actual the number on the left).
As is often the case, it took a few moments for the market to figure out what to do with this data, but on the whole it took it as a positive. As I am typing these words, all the equity futures are green. The /ES, below, jolted lower briefly but is now once at its highest level in the past ten months.
Looking at more of the /ES, you can see that last night we pushed above the highs from last weekend’s “debt ceiling deal” pop.
The /NQ is less exuberant. It is up also, but only about one-fifth as much as, let’s say, the small caps.
In light of the strong jobs report, bonds sold off.
And gold is particularly weak on the news.
And, with all that, the few atoms of fear that might have been left have vanished, and the VIX is threatening to even get to a 14-hande (as I offer a gentle reminder we were at nearly 40 on the VIX last year).
I’m going into the day fairly heavy. I took profits on Wednesday in my personal account, so that’s been 100% cash since then (mercifully). In my big account, I’m still at 10% cash, but I’ll probably trim a position or three if things still look ugly for me.
