SPI200 Commentary Follow or Fade Non farms disappointed in the...

SPI200 Commentary

Follow or Fade

Non farms disappointed in the print but the markets have taken it as a sign that the FED wont raise rates so it looks like the markets will continue to climb the wall of worry. The XJO has been the worst performing index leading into this number and will probably disappoint in its recovery but I do think that the low made on Friday will hold for a while. We should see the XJO trade and close above the 5400 level today so we should switch to buy pullbacks mode. How far the XJO will head is anyones guess, but it will all depend on the S&P. If the S&P can manage to break higher then it will lead the XJO higher. We are heading into the Sep/Oct period though which usually is the most volatile trading period so I will be a cautious bull. I'm sure the majority of investors will also be cautious and aware that crashes do happen around this time, which is why it could certainly just head north in contrarian manner. For todays trading I will be looking to buy dips around 5370 and sell rallies around 5440