Editor's Note:

Investors appeared to be locking in profits ahead of tomorrow's jobs report. That does not suggest a lot of confidence in the July numbers.

A couple of days ago the ADP Employment Change report showed private payrolls missed estimates. Economists were expecting the ADP to show +215,000 new jobs. The results were only +185,000. That's down from June's +237K, the highest since December 2014.

Tomorrow's jobs report and the August report on September 4th will be two of the most watched jobs reports in recent history. That's because they're the last two nonfarm payroll numbers before the September FOMC meeting.

Analysts will be looking for any clues that suggest the Federal Reserve will raise rates in September. If the next two jobs reports are strong then odds of a September rate hike will go up, and that could spark more selling pressure for stocks. Odds of a big up day or big down day are pretty good based on the jobs number. Current estimates for the nonfarm payroll number tomorrow is +223,000 jobs.

No new trades tonight.

I was planning on adding a bearish trade on Iconix Brand Group (ICON) but after the closing bell the company announced the CEO is stepping down. Shares of ICON are trading down about $2.00 after hours (a -10% move) and I would not short the gap down at the open.