Source: Investmenthouse Weekend Newsletter for April 6, 2014
1) MARKET SUMMARYFrom "The Daily" by Jon Johnson at InvestmentHouse.com
As the boy who took Sarah Connor's picture in the first 'Terminator' said, viene la tormenta (a storm is coming).
- The storm hits NASDAQ and RUTX again, this time taking a toll on SP500 and company as well.
- Jobs Report called Goldilocks scenario, but market decided it certainly was not just right.
- Low paying jobs dominate yet again. No improvement until there is investment, and investment relies upon stable policy that promotes risk taking. Right there are two risks: the usual risk of an endeavor with the added risk of government sanction if you are successful.
- VIX elevated its trading range but not at critical stage. Worth watching.
- Still some great upside sectors and stocks, if they can hold up against growth's selling.
The market had the look, we started shifting to downside plays, and Friday the NASDAQ selling that showed up two weeks back resumed. As Bill Paxton in 'Twister' responded to Phillip Seymour Hoffman's warning a storm was on the way, it's already here.
A bit melodramatic, but they fit. Similar to Ron Insana's article Friday regarding the 'shock' about HFT trading, where he quoted Captain Renault in the great movie classic 'Casablanca': "I'm shocked, SHOCKED to find that gambling is going on here!'
Captain Renault is shocked about the gambling, then collects his winnings.
The session started off decently. Futures up ahead of jobs. Jobs came in not too hot, not too cold, kind of Goldilocks just as some on the morning financial stations proclaimed. Futures jumped nicely. Stocks started nicely higher. Immediately, however, the move came under pressure. They sold into the first half hour but bounced. Never made it back to the opening high, however.
Read "The Daily" Entire Weekend Summary Watch Market Overview Video Watch Economy Summary Video Watch Technical Summary Video Watch Next Session Video
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