Double Topping on NFP for Aug 07 2020

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The weekend has already arrived for Dynamic Traders. Time to sit back, relax and enjoy the next few days.

NFP Aug 07 2020

The S&P 500 is close to new ATHs. It has moved up around 25% since April 7 2020 (85 trading days ago) which is the date we turned bullish.

The fear of a double top will always be present but looks less likely based on the fact Tech is moving this market up and Nasdaq Composite is already some 13% above its prior ATH since breaking out 42 trading days ago.

In those 42 days Nasdaq has been leading this market and the S&P 500 has only gained about 3.5% so we can see where the leading stocks reside and this is something we have mentioned throughout this bull run.

However, this momentum is likely to shift, at least temporarily, when companies testing for COVID vaccines are getting closer to a positive result and the market attention and inflow of money moves to Healthcare, Utilities and maybe Defensive stocks.

For now, the strength is with Tech and we will continue to look for new opportunities after NFP.

For our newer members who may not be familiar with NFP.

NFP stands for Non Farm Payroll and provides a monthly report referencing the number of jobs created in the US but excludes certain types of workers, such as farm employees, private household employees, proprietors and the self-employed
It is a very important metric and one that institutions look towards for a gauge of the health of the U.S. economy..

NFP expectation is for about 1.58 mln.

Last month it gained 3.6% so another positive gain surpassing expectation would expect to translate as bullish for the market but as we know, NFP is very much a gamble and even when news has been positive, that has not related similarly on the market.

See you on Sunday morning 10am weekly webinar.

Let’s go trade!