Thursday, October 04, 2007

Market In Holding Pattern Until Tomorrow's Jobs Report

The market is up slightly in early trading, but I don't expect any big moves until tomorrow's payrolls report. The maginot line is 100,000 jobs added, so any number that is materially higher or lower will bring out a lot of volatility in the market.

If you are trading tomorrow, my advice is to sit out the morning, as the economic data tends to make is too whippy. Better to wait until cooler heads prevail later in the day and put on your positions then.

NTRI is getting whacked this morning (35%) after warning that 3Q earnings and revenues would be lower.

Asian markets were lower last night, most likely due to profit taking after a big run. Bond yields are steady, with the 10-year yield at 4.54%. And oil is down slightly, trading just below $80.

Healthcare stocks are the strongest so far (+1.1%), while homebuilders are the weakest (-1.8%).

After the close, RIMM reports earnings. This will be a closely watched report as it is the first big growth stock to report earnings. The stock has had a big run, so expectations are high, and it will be interesting to see how the stock reacts.

long RIMM


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