The market got off to a slow start following yesterday’s wild swings as the bears held court for about an hour. The losses were mild as the bulls got some good news before the bell concerning unemployment.
The ADP Employment Change report for September showed that private payrolls swelled to 91,000, which was far better than forecasts for increases of 45,000 that had been penciled-in by the suit-and-ties. This week is still full of headline risk, not just from across the pond, but here at home.
For Thursday, we get another look at the weekly jobless claims numbers with Initial Claims and Continuing Claims ahead of the bell.
These two reports will set the stage for Friday’s Nonfarm Payrolls report for September as well as the Unemployment Rate, Hourly Earnings, and the Average Workweek figures. Also on the agenda are Wholesale Inventories and Consumer Credit for August.
As far as specific stocks, Research In Motion (RIMM, $23.99, up $2.99) is surging 14% today on water-cooler talk Vodafone is taking a look at the company. We have done well shorting RIMM over the past few months. Back in June our subscribers banked 357% on put options when shares dropped below $30. In September, we went back to the well and recommended another put option trade as we said shares would make new lows. That trade made 137%. We are sure what the future holds for RIMM but shares could be getting attractive for another possible short.
With the European markets closed, we could see a continued move higher as traders position themselves ahead of tomorrow’s unemployment news. The Dow is up 2 points to 10,810 while the S&P is higher by 3 points to 1,127. The Nasdaq is showing a pop of 16 points to 2,420.
We released two new trades this morning that have gotten off to good starts and we have another 2 trades we are releasing right now! Subscribers, check the Members Area for the updates.]]>