News:
On Friday, markets digested the first jobs report of Q4.
336,000 new jobs were reportedly added to the American economy—the most since January.
After gapping down for a red open, markets climbed through the trading session and closed with nice gains.
The indexes settled near their session highs…
- Dow Jones +0.9%
- Nasdaq +1.6%
- S&P 500 +1.2%
- Russell 2000 +0.8%
Sector Round Up
The bullish sentiment fell short of all-consuming—10 of the 11 sectors were green at the close.
At the top…
- Technology (XLK) +1.9%
- Communications (XLC) +1.8%
- Utilities (XLU) +1.4%
The only loser…
- Consumer Staples (XLP) -0.6%
No Peace in the Middle East
Over the weekend, intense fighting broke out between Israel and Hamas. It’s the worst conflict between the two in well over a decade.
- At writing, over 1,100 people have reportedly been killed
- Stock futures are red
- Oil future spiked as much as 4%
Technicals:
As expected with Friday’s rally, the VIX dropped.
Notably, it’s back below the critical level of 18. Just one more level to go…
A VIX this low isn’t rare in bull markets.
Even as futures are gapping down this morning, prices are currently holding above last week’s biggest resistance level.
Our outlook remains unchanged. We are buyers in this market.
Your latest readout…
- RSI levels are all back to neutral
- The put-to-call ratio is back to neutral for the first time in over a week
Timing:
The week ahead is packed.
- Today, bond markets are closed for Columbus Day
- Wednesday, FOMC minutes drop in the afternoon
- Thursday, headline inflation data is due
- Friday, earning season kickoff
Watchlist:
*Low Float
^Open Position
*IMMX support at $3.75
*GRPN support at $14
^*GLBS on watch
LFMD support at $6
TNGX support at $11
MRTX support at $55
Secondary watchlist—float 100+ million
^TAL support at $8.50