As we looked at the charts for our earlier letter and considering the NFP number today, we couldn’t help but think no matter what the number was the equity markets had already baked it in. As we can see now, as we look at the current pricing, this was indeed the case, despite the NFP beat and lower unemployment percentage. Here are the equity index futures we follow in what is quite a muted trading session thus far (tradingview.com data)
For those that read our earlier post the 3520/3530 area has clearly been the long term heavy resistance and its proving its stopping power once again today!
As far as Non-Farms Payroll (NFP) the internals were pretty good, however this is a rear view mirror report and with certain states increasing lockdowns, well, unless we get another stimulus, we have to tread lightly here on the optimistic side. None the less the report was decent and beat expectations and its Friday, so let’s keep it positive:
BLS reporting that in October, the US economy added 638K…
