Wednesday, October 6, 2010

Last POMO day

Has been  a busy morning so not much time to post.  Last hour we had the ADP jobs report that came in very negative:  -39k vs. +20k consensus expectations.  This brought futures back down below yesterday's close, and we'll probably see some initial selling at the open.  Barring any further bad news, today's $2 billion in expected POMO activities should be enough to keep the market up, but I wouldn't expect to see the huge gains we saw yesterday....never know, tho'.  

I do however think that we are at, or very near the top of the rally that started in Sept.  I may put on a few small short positions later today, but will wait until after Friday's Non-farms payroll data to come out before getting more aggressive.  As mentioned yesterday, I think we have a decent shot to see one more bear-trap via a manipulated NFPD report, so I don't want to get over exposed to the short side just yet.

All for now.  Good luck trading.

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