They called it a goldilocks jobs report. Strong jobs creation, softening wage and salary inflation. The shorts got crushed. I know. I was one of them. Too early, or just wrong? But guess what. All of the indicators, so far, say that this was a reaction rally in an intermediate term bear market top. It should begin to burn out this week.
Furthermore, if most of the shorts covered in the buying panic on Friday, who will buy on the way down? The only thing Wall Street’s professional bulls are short of is cash. Once this rolls over and starts down, it could be a long wait for buyers to show up in size again.
That said, I will honor the market’s message this week. Here’s what you need to look at to know whether to be long or short.
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These reports are not investment advice. They are for informational purposes, intended for an audience of investment and trading professionals, and other experienced investors and traders. Chart pick performance changes week to week and past performance may not indicate future results, as you know. Trading involves risk, and these reports assume that you understand those risks and manage them according to your tolerance.
