Bounce Came – Now What?
Greetings from 38,000 feet where we are returning home from a week in the French Alps celebrating my closest friend’s 60th birthday with seven couples. He has hosted couples every 10 years since his 30th and each event gets bigger and better. He’s a thrill seeker so these trips push you to your limits and get you far out of your comfort zone, like paragliding at 5,000 feet.
Thursday was a strong day for the bulls, price-wise. It was underwhelming beneath the surface. On Wednesday I wrote about the setup for a bounce before more downside. The market has had two solid days and there should be at least a little more pop coming.
The NASDAQ 100 below is not strong and needs more work to prepare for the big four month rally I see coming. The S&P 500 below that looks better.
The August employment report comes out at 830am. It has been so insanely volatile that guessing the number would be tough for me. Regardless of the numbers, I would like to see a muted market reaction, especially in bonds where a 1/4% rate hike is possible this month.
The last unofficial weekend of summer is here. I would like to play golf in our club championship, but catching up in the office and healing up my body are priorities. Lots of fun social plans in the evenings and another visit to The Place with our family fantasy football draft on Monday night.
On Wednesday we sold SSO. On Thursday we bought GDX and PDBC. We sold HYG.
