Today, to make up for yesterday’s missed write up, I am going to be making four different picks for the market. Hope you enjoy! Before we get to that, let’s recap what happened on Wednesday. We went 2/2 on the day. The Buy Pick of the Day was Fifth Third Bancorp (FITB). The stock we bought at 9.90, before watching it decay to 9.70, then rally all the way back up to 10.15 for a solid 2.5% gain on the day. On the flip side, we were betting against oil after a crude inventory report showed inventories did not rise any further the past week. We got in Proshares Ultrashort Oil and Gas at 10:30 AM after hearing the report at 14.80, looking for an exit of 14.30 – 14.45. We were able to get out for a solid 3% gain at 14.30. Wednesday was good to us. Let’s hope Thursday is more of the same.
Buy Pick of the Day #1: Direxion Daily Financial Bull (FAS)
The main report this morning was the unemployment rate, which came out at 9.8%, the expected amount. That was probably better than most people had expected, however, non-farm payrolls dropped over 260,000 compared to the expected 190,000. The average weekly hours worked by an American adult dropped to 33.00, compared to the expected 33.10. Further, the average hourly earnings rose by 0.10% in the month of September, but the expected rate was 0.20%. Overall, this data paints a pretty bleak for the day, and the futures are down nearly 100 points for the Dow as of 8:31 AM.
So, why in the world, would I be bullish on anything that is not inverse. The market has priced in these expectations. Everyone after the ADM Nonfarm Employment Change was expecting the Nonfarm Payrolls to be down and unemployment to drop. Unemployment stayed the same and did not fall…that is in some crazy way a bullish thing. With the market decining 4% coming into today, it appears that these results were already priced into the market. This morning’s selling frenzy is simply scared investors. So, we want to position ourselves to take advantage of this rally off morning lows. Over the past three days, the stock has declined 1/7 in value or around 15%. That is way too fast!
This ETF, I like over others, because of some large financial upgrades we saw coming out this morning. The first…
