Market Shrugs Off More Solid Economic Data

Yesterday's GDP report was stronger than expected, showing the economy hasn't slowed all that much yet. And we know that jobs growth is among the most important factors. So the bulls cheered this morning when the October payrolls report showed a gain of +166k jobs (vs. consensus of +80k).

But the enthusiasm for stocks quickly waned, and the market sold off as quickly as it had run up. Since then, we have been bouncing around in early trading. Tech is hanging in well, while the financials are under heavy selling pressure.

Oil prices are back up above $94, and most of the energy stocks are higher. The oil service stocks have all pulled back, and look extremely attractive to me. I am looking to add exposure there. Ok, Greg?

Asian markets got spanked overnight after the selloff in the U.S. and the distress on our big financial companies. The Yen is a touch lower today, but I would like to see it fall under its 50-day support to unleash another rally here.

Keep an eye on bond yields also. The 10-year yield hit 4.29% this morning, a fresh 2-year low. That is a sign bond traders are worried about the economy. So I want to see longer-term yields remain firm, even if shorter-term yields are coming down.