Good evening. I do not have specific updates for you this evening with the exception of the following comments. My comments on plays from the previous day or two are all still valid and the model portfolio snapshot is current.
DPS - We missed our trigger to open long positions by 7 cents. We may get an opportunity tomorrow on a pullback. Nimble traders may consider buying a breakout.
RAX - The stock surged higher today and we are up +6.4% in the trade. Protect profits if things reverse tomorrow. $20.25 could be considered as a tighter stop.
Short Positions - There are no changes to my comments from the past few days. Our stops are in if the rally continues tomorrow.
Tomorrow is the highly anticipated non-farm payroll report. A bad number could send the broader market plummeting very quickly and erase many of the gains experienced this week. If the report is bad and stocks begin to sell-off getting out of long positions is probably the right course of action. However, a good report may extend this rally further. There is one thing for certain and that is the indexes are approaching major resistance levels. I'm not so sure a good employment report will be enough for the indexes to break through overhead resistance but if it does watch out above. The S&P 500 is 10 points away from 1,100 resistance and 25 points away from its 200-day SMA at 1,115. I believe a good employment report will send the S&P 500 into this range tomorrow which puts us back in no man's land. Regardless, we may have some opportunities tomorrow to book profits. Please email me with any questions.