It’s the first of the month, so mutual fund money will come pouring in. I am also aware that a lot of hedge funds who have been on the sidelines the last couple of months need to get back in the market to salvage some gains for their clients. I understand that China, India PMI came in in-line or better than expected…. But I did not expect this type of bounce.
The market just shrugged off and then RALLIED on a -10,000 jobs report from ADP. This is befuddling. We are getting by bombarded by weak data. We keep getting revised down and yet we keep missing, or mildly beating the estimates. The idea that this is ‘priced in’ is hogwash. But hey, you can’t fight the tape.
On low volume days like today, there is nothing you can do but sit back and watch. I still hold my SDS Sept 34 Calls @ 2.18. I’m going to be down a grand at the open. I’ll be stubborn. I’m not taking this loss. No one ever made a dime by panicking.
My prediction for today: