Traders Leaned The Wrong Way Ahead of Jobs Report

The market is nicely higher in early trading after a better than expected monthly jobs report. Nonfarm payrolls for February showed -36,000 job losses, but this is less than the consensus for -68,000.

Moreover, that consensus figure had been moving lower in recent weeks, from a figure closer to -20,000, as people speculated that the inclement weather during the month would weigh on the employment picutre.

Yesterday, the put/call ratio closed at a very high level of 1.01, which is odd for an up day in the market. It looks like traders were placing bearish bets ahead of what they thought would be a worse than expected jobs report. But as the soup nazi said, "no soup for you!" So this morning those traders are caught leaning the wrong way, and that is likely adding to the upside pressure in the market. I don't like strong market opens on Friday, and would not be suprised to see some of this strenght fade before days end.

Apple (AAPL) is up +3.4% this morning to a new high on the news that the iPad will go on sale April 3rd. I think it is going to do very well. I usually wait for the 2nd interation of new tech products, but I'm thinking of breaking my rule and getting one right away. One reason is that I've been watching the Cavs' games on my iPhone via NBA League Pass. It's great, but it will be SO much better on an iPad. Not to mention how much better it will be to read the newspapers I download, play video games with my kids, and just about everything else I do on my iPhone except talk.

Asian markets were higher overnight; the 10-year yield is also higher to 3.70%; and the VIX is plunging -6.3% to a low level of 17.50.

Trading comment: The Nazz is only 9 points away from a new high, and many stocks continue to break out to new highs. I continue to say follow the leadership. I know volume has not been great so far, but I don't want that to keep me (or you) from making money.

long AAPL