Despite horrible jobs report, indices on track for new all time highs !!!!

So...we had a shocker in jobs report of 38 K job creation, and further downward revision to previous two months by a fair amount, that is not a picture of  growth as drum rolled by Fed Chief and its dozen mouth pieces.....no credibility in their focus of face time on TV......

Indices reacted very well to disastrous jobs report and downward revision and closed near upper end of trading range. These jobs reports are extremely volatile and cannot be taken too seriously, only a trend line indicator, which is still robust.

I expect a reversal of Friday's sector movement as it was overdone......

Here is how we stand in major indices :

S&P 500 @ 2099.13, all time high 2134.72 only 1.67% away

Dow @ 17807.06, 18351.36 all time high only 2.97% away

Nasdaq @ 4942.52, 5231.94 all time high only 5.53% away

As one can see clearly that S&P 500 should be @ new all time high in short order, followed by Dow and Nasdaq to be the last one.....

In this conflicting data market, it is important to be diversified in many sectors like Oil, Gold, Tech, Financials, Chinese & other EEM exposure bets......

We all have to recognize that US is growing faster than any European economy, India has taken over China as the fastest growing economy tipping 7%+ GDP growth.....

Interest rate in US could take place in July or September...one time and its done for the year....

US$ is the wild card, IF it goes up substantially, then equities and commodities will be impacted to the downside......

Let us hope that US$ remains contained in its trading range, then we will be OK....

Good luck with your own strategy and comfort level, volatility will remain high.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed