120K new jobs, unemployment drops to 8.6%. Interesting that this would have normally resulted in another strong performance. Here at 9:23 AM, two hours since the data was released and Dow futures are only up 12,128… Makes me stop and say hmmmm. In fact we may get a buy the rumor sell the fact activity today.
Also worrisome, the dow is up against the 12.200 level of resistance I have been talking about for weeks. The last time we got here, I got short solely on the fact that we were at resistance, and low and behold the dow broke 1000 points in 8 days. Of course the following 5 days we rallied back those 1000 points… Ha Ha Ha Ha.
Bottom line, I’d be inclined to sell into the 12,200 level in the Dow. At the very least buy some 11,000 puts.
Also, another reason I am less than bullish now… SPZ has major resistance at 1260, 1277 and 1284.. I can’t get really excited until we settle above those levels. With the Dow looking at a Triple top at 12,200, I’d want the broader S&P to pop above 12.80 before I would look for a new leg up in stocks.
CER
