More of the same old same old?

This will be an abbreviated newsletter.

The U.S. employment numbers that came out today and overall were very good. The private sector growth was positive as were the previous revisions. However, the underemployment rate rose to records for people looking for jobs. Structural problems remain a strong headwind. Nevertheless, I believe investors and traders will likely focus on the positives meaning the markets should continue to move higher over the near term baring any sharp rise in interest rates.

Next week traders will face a rather large $84 billion government bond offering. The 10-year traded up to 3.94% after the jobs report. It remains to be seen how the bond market reacts after the poor auction results of the previous week.

In last week’s newsletter I mentioned that any weakness prior to an expected good jobs number should be bought given the high expectations for a very good jobs number. While the expected EOQ markup left a bit to be desired from a short term trading perspective, the normal sell off was right on time after 2:00 Wednesday (see trade thoughts for EOM and EOQ in The Definitive Trading Bible).

The OEX 535W calls traded as low as $1.20 near the close Wednesday and traded as high as $5.00 early Thursday morning. I was unable to send an Alert Email for this trade setup as both of my internet systems went down after 3:00 Wednesday. However, there was another call buy setup after 2:30 Thursday afternoon. I did send an Alert Email but the market went straight up into the close. The 535Ws went from a low of $0.70 to $3.30. This happens every week.

BTIM, our shining star, rose above $7.80 where stock could have been sold and repurchased under $7.00. BTIM is almost as good as a past favorite Huntsman. Our overall NET trading strategies are as good as it gets in today's market.

We'll let next week unfold before signaling any potential trades. I'm looking forward to the time off.

I want to wish all of you a Happy Easter and enjoyable weekend.

Good trading,