1:30pm (EST)

It has been a week of market moving headlines and this morning was no different following the release of the Nonfarm Payroll report.  The bulls were looking for a little ray of sunshine and got it after hearing payrolls climbed 163,000 in July.  This was sharply higher than June’s print, which was revised to 64,000, down from 80,000.

The Unemployment Rate edged up to 8.3% from 8.2% while the Average Hourly earnings rose 0.1%.  Elsewhere, the ISM Services report came in at 52.6, which matched expectations, and was slightly higher than June’s print of 52.1. 

While we did expect some kind of bounce in the morning, we didn’t believe it would back to the top of the trading range, but it could be a good thing.  Today’s action already guarantees the trading range will continue into next week if resistance holds and if the market does fall back to the bottom of the trading range, there is a good chance, support won’t hold.  Of course, there is also the chance of a breakout.  

The Dow is up 236 points to 13,115 while the S&P 500 is gaining 27 points to 1,392.  The Nasdaq is surging 62 points to 2,972.  Although we still have to wait a few hours to see what that charts tell us what could be in store for next week, the one chart we want to show you right now is the Russell 2000 which is at 789, up 21 points.

As you can see, the downtrend is still intact and the bears will try to hold 790 today.  We will show you all of the complete charts when we get back to work on Sunday but let’s see how the close goes.


There are a few last minute updates for our current trades so that’s all we have for now.  We see some low hanging fruit for next week that looks ripe for the picking and we plan to add a number of possible new trades to our Watch List if resistance holds.  We will also add some call options in case the bulls decide to make a jailbreak but we are looking for the new trend to be down once we get out of this 3-month, hair-pulling, trading range.

We were able to close 3 more winning trades this week which gets our 2012 Track Record to 112-31.  So, despite a choppy and volatile market, we are still carrying an 8-out-of-10 success rate for our all of our trades.  We will also cover what to expect for the back half of the year so we will have a lot to talk about when we get back.

Our next issues will be out Sunday night with our Weekly Wrap and on Monday morning with our Daily newsletter.  Until then, have a great weekend everyone!