MomentumOptionsTrading.com Midday Update for 7/3/2014
Dow Triggers 17,000/ VIX Near 52-Week Low
The bulls are pushing fresh all-time highs following this morning’s Nonfarm Payrolls report. As usual, Wall Street underestimated the strength of a rebounding economy as 288,000 jobs were added in June.
This was the fifth-straight month with gains of over 200,000 jobs added to the economy but there are still issues with the numbers. While good, the labor participation rate has been stagnant as more and more workers are throwing in the towel.
A number north of 350,000 would convince me the economy is really doing “great” but for now, the numbers are good enough to keep this rally going.
The Dow is up 94 points to 17,070 while the S&P 500 is higher by 9 points to 1,984. The Nasdaq is advancing 24 points to 4,482 while the Russell 2000 is jumping 7 points to 1,206. The VIX is at 10.44, down 0.38 and near its 52-week low.
The start of 2Q earnings season starts next week and the action will likely heat up as Wall Street gets back into the game. A lot of traders missed this week’s push to record all-time highs like I said they would and they could be anxious to put some fresh money to work.
I will have a big update for the weekend as I cover the first half stats and where the indexes are at in relationship to my yearend targets. I will get a few days of rest but I am eager to do the Sunday homework and chart work as my playlist is exploding with possible new trades.
I have updated our current trades ahead of today’s 1pm close as some of them continue to see nice gains.
I will be back Sunday night with the Weekly Wrap and on Monday morning with the Daily. Until then, have a great and safe holiday weekend!