The Wrap 10/7/10

{+++}Strong same-store sales results and an in-line weekly jobless claims count were offset by the dollar’s recovery. In turn, the stock market booked another flat finish ahead of the always-pivotal nonfarm payrolls report. After the close AA, ANGO, DRWI, MU and NUHC were the most notable names that reported after the close. 

Six of the sectors were in negative territory, led by telecom (-1.2%), materials (-0.9%) and consumer staples (-0.5%).

Tomorrow morning before the open, two economic reports are scheduled to be released: 1) nonfarm payrolls (Consensus 0K) and Nonfarm private payrolls (Consensus 74K) and 2) Unemployment rate (Consensus 9.7%), Hourly earnings (0.2%) and Average workweek (Consensus 34.2).

Tomorrow no companies are currently scheduled to report.

Shares of Adobe Systems Inc. closed more than 11% higher today, after a visit to the design-software firm’s offices by Microsoft Corp. Chief Executive Steve Ballmer stirred speculation that a deal may be in the works. Stay tuned.


This dollar of ours seems to be in free fall and looks at least to me tat it wants to retest at the very least, the lows made back in November. It did however have a bit of a reversal today and a bit of a dead cat bounce. The dollar may hit those November lows, but may want to stage an oversold rally first. We’ll see.

The action in the market continues to be incredibly bullish although the volume has been light since the big pop we saw on Tuesday. We are really in amazing times, and trying to gauge the markets next move is next to impossible.

My stops have been tighter and that can be frustrating, but as we trade around these new higher levels my caution level has a tendency to go up dramatically. (See past crippling sell offs when we thought everything was great) We have had a great trend (and are still in the midst of a bull trend), but even if we go to SPX 1200 in the coming weeks, it won’t be in strait line up. My goal for the site is to take small losses and catch a trend that allows us to maximize short term gains.

The Fed is still at the wheel and quantitative easing is a bulls best friend, but as the Fed’s Fisher said to today, “ Issues with economy are beyond a monetary policy remedy”; adding to balance sheet most likely to be ineffective stimulus- Treasury may need to assist small business lending, jobs market not improving quickly enough.

No names tonight.

The happiest people don’t have the best of everything, They make the best of everything………unknown

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