U.S. stocks posted a follow through day to the downside yesterday, effectively ending the rally that began late last summer. In order to offset this price action, a huge upside day will be required. What could be the catalyst for that? A big number in this week's employment report. This morning, the ADP gives the first glimpse at Friday's employment report, but it has not been a very reliable indicator of the government number in recent months.
If the number is over 300,000 new jobs on Friday, I suspect there could be a spike. At the same time, that may also indicate that the Fed must stop QE2 sooner rather than later, which would spook the market. A perfect number might be in the 150K to 200K range.
Stay tuned!
Scott Cole
www.bestdaytradingstocks.com
Wednesday, March 2, 2011
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