As Yogi Berra once said it is Déjà vu all over again!
Apparently taking a key from Ben Bernanke, his European counterpart Mario Draghi the head of the European Central bank did not reassure investors about how he wants to handle his mounting banking problems.
After being up more than 100 points overnight the markets took his non comments as very negative sentiment and plunged the DJIA down almost 300 points from the overnight top before gaining some traction to finish the day down a little more than .5%.
It was the fourth straight day in which the US markets have shown a loss.
In his statement Draghi said that the ECB would join in the purchase of European government’s regional debt, but added the caveat that the Germany Bundesbank is having reservations about the plan. Without any enthusiasm from Germany it appears that the details for the plan have not been worked out, and that always give traders heartburn.
So now the world focuses its attention on the jobs report that will be issued tomorrow by the bureau of labor statistics. It is forecast to hold the unemployment rate at less than 8.2% and to have the market add more than 100,000 jobs in July.
The market tomorrow will be one that is totally expectation. If the numbers come in better than the street’s estimate we can expect the markets to take off, on the other hand if nonfarm payrolls don’t meet expectations we should probably see some price action to the downside.
No matter what happens with the report, I can teach you how to react to the price action that is going to take place. We don’t try to predict where the market is going; rather we are going to react to what it is telling us to do.
Reacting to the clues that the market is giving create the opportunity to generate winning trades. I have taught hundreds of students how to take opportunity and turn it into winning trades, and I can do the same for you.
To contact one of my financial consultants, and work with me one on one, go here:
Keep those stops tight.
Todd “Bubba” Horwitz
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