Markets Await Jobs On Friday

The markets have gone into sleeper mode after a monster rally yesterday. The Dow Jones Industrial Average surged over 12,000 and the S&P500 jumped over 1,300 as all of the massive sell off last Friday was negated. Today, it is quiet, the markets are hovering on the flat line as consolidation is taking place.  The SPDR S&P 500 ETF (NYSE:SPY) is trading at $130.53, -0.21 (-0.16%) as the Dollar ticks higher. The last two days the markets rose as the Dollar fell, today the Dollar is slightly higher and the markets are pausing or pulling back slightly.  This inverse relationship continues to hold.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $22.23, +0.09 (+0.41%).

This is a classic consolidation day in the markets with extremely light volume. The markets are now waiting for the Friday Unemployment Report and Non Farm Payrolls. Today the ADP Private Sector Employment data was released showing a solid gain for 187,000. However, this number does not always dictate a strong Non Farm Payrolls number as the market found out last month. After a great ADP number last month, the Non Farm Payrolls were poor. This surprised the market slightly but did not cause a major sell off.

Look for light volume to continue until Friday morning. The markets will most likely stay quiet and neutral. In addition, keep a close ear to the Egyptian situation as a worsening could have a negative impact on the U.S. markets.  This would occur as investors would run for cover in the Dollar. A higher Dollar would cause the markets to drop. In addition, gold and oil would move higher.

About Gareth Soloway 168 Articles


Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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