Today was a follow through from the mediocre new jobs number on Friday. What happened? The market opened down a little over 1%, the “buy the dippers” came in for “bargains” and the market ended down roughly 1%.
Looks like the news made people more cautious, but didn’t knock out the momentum buyers. Apple, and other highly rated stocks featured in a well-known newspaper, such as PKT, ALLT, QCOR, were all up today. It seems that if a company has a strong individual story, or strong momentum, that it will take more than a lame jobs report to knock them down. Therefore, if you own these types of stocks, keep riding them until you get clear sell signals. Because if this market rallies or even stays flat, you might make money. And if the market continues to fall, maybe the strong stocks don’t fall as much.
Which should mean that this market has the means to move up. Which the market does if no major news break. However, since we’ve made such a strong move since January, it may make sense to keep powder dry and just hold on to solid winners, and be careful about buying into new positions. Large funds will sell if it means protecting the gains upon which they will earn their profit sharing.
Also, Copper was weak today and treasuries were strong. we have to watch and see how these situations develop.
The dividend payers held up ok – the telecoms have been leaking, but other dividend payers didn’t suffer too much today. The tech dividend payers mostly fell in line with the market. The MLP’s drifted slightly lower – these should watched. If the economy turns weak, this income may again become attractive to investors. The precious metals showed a little strength today, as perhaps some are reading money printing in the tea leaves of the job weakness. it might be too early to jump there but it may be where we’re going.
Recommendation – caution, eyes on stops for trading positions, refresh buy points for value positions.
At the time of this writing, I or my clients own the following investments mentioned in this column: NONE
Note: this article is meant to be some helpful thoughts to share and not investment advice specific to you. Please consult your own advisor regarding investment and financial decisions. See our disclosures page