Ho-Hum Jobs Number

Trading Opportunities Using Inter-Market Relationships

Good Morning,

Well, we got the jobs data and as my old research analyst used to say: "Eh! and then a "Hmmm". He would say this when data would come in on the screws (not far from expectations). More importantly, the data isn't strong enough to keep the Fed from mingling, but isn't weak enough to get them to meddle in the very near future. So, "Eh!"

As a result of the number, the SPX is off and the VIX chart I showed you yesterday is popping off support. If you were paying attention to the weekly jobless claims and watching them rise, you probably could have put together a "risk scenario" for equities based on a modest to weak unemployment report and thus, could have surmised that purchasing VIX calls is equal to paying your auto, health and life insurance premiums.

Technically, the SPX is barely off its bull run highs. Yesterday, we were 3% below the 1420 high and even after a sluggish jobs report, we are only off 4% - well within reach of highs if the "QE rumor" comes back into play.

Another sector that has done quite well as of late is the commodity sector. USO was creeping up towards 33, but seems to have some resistance in the 33.50-33.75 area.

GLD still has a trendline intact that is providing solid resistance:

Moving to forex, the EUR/USD is sitting just above the major bear run lows around the 1.2300 handle. If equities worsen, will we see a BUFFALO BOUNCE opportunity? Will we see the 1.2287 level taken out? It seems likely that if any more European "troubles" arise, the 2010 low at 1.1875 could be the next target. European vacation anyone?

Tip of the day: Look for the LUNCH RUN TRADE

Happy Trading and Be Environmentally Cool and "Eh!"

Coach Brian

Published On Sun, Jul 8 2012, 22:40 GMT Previous entries

Brian J Kahn

Follow Follow my activity on FXstreet.com Jupiter Peak Financial, LLC website

Brian has over 13 years of securities trading experience. He began his financial career in 1998 trading in the bond futures markets for International Trading Group LLC. in Chicago, IL. Upon moving to Utah, while continuing to trade and manage his own accounts, Brian helped to create, teach and sell financial education for True North Academy in American Fork, Utah.

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