ADP Report Shows Job Losses Moderate In December

The market was flatting around the open, and is fractionally higher right now. The ADP Employment Report showed 84,000 jobs were lose in December, which was a bit more than expected but a drop from November's tally of -145,000 jobs. So hopefully the direction here will also be reflected in the govt. jobs report on Friday.

Also, the ISM Services Index came in at 50.1. This figure is also a bit below consensus, but up from November's reading of 48.7. So the trend here shows continued improvement in the all important services sector.

In corporate news, fertilizer company Mosaic (MOS) reported earnings that were short of estimates, but the stock is higher this morning. I think this is reflective of the general sentiment that fundamentals in the agribusiness industry have stabilized, and with recent price negotiations for potash out of the way, more people are turning bullish on the group.

The dollar is mixed today, but commodities are mostly higher. Oil prices have dipped ($81.75) due to the inventory report this morning, and gold prices are higher again near $1128.

Among the sector ETFs, materials are leading the way (+1.23%), followed by healthcare (+0.77%); tech and consumer staples are the laggards, both down -0.30%.

Asian markets were mostly higher overnight; the 10-year yield is higher to 3.82%; and the VIX is falling to new lows for the year (18.85), actually the VIX is at its lowest level since August 2008.

Trading comment: The market remains overbought, the VIX is at new lows, and investor sentiment is creeping into complacent territory. This looks like the type of setup where you could see a quick 2-3 day slide in the market, which would be a better buying opportunity that chasing things at current levels.

long GLD, MOO