Markets always have multiple view points and many continue to try to pick a top near resistance levels on riskier assets. Guru trader Maximus24876, was considering placing a short S&P 500 Index position on Thursday ahead of Friday’s non-farm payrolls report. When asked about his outlook by one of his followers, trader Chriss100, Maximus24876 replied that he believes that a reversal is coming. He went on to state that today (Thursday) is the beginning of a new risk averse move.
Maximus24876 had a rocky month in January, but has shown solid results during the past 6 and 12 months with returns of 41.3% and 692.1% respectively. This trader has 2398 followers and 233 copiers, and uses US indexes to express his views nearly 15% of the time.
US markets grinded lower during the first part of the week, but received a boost on Wednesday when ADP and Macro Employment Advisors released in line private employment. The in-line number gave bullish traders hope that Friday’s government number would give the market a boost.
The solid ADP data was followed by a blowout Non-farm Payroll number which also included a better than expected employment rate. The number of jobs that were filled in January jumped to 243,000, much better than the average estimate of 125,000. Most analysts also forecast that the employment rate would tick up to the 8.6% level, and were surprised by the decline to 8.3%. The US economy is obviously gaining traction which could lead to further increases in US stock indexes.
Technically, the major indexes broke out to the upside. The Nasdaq 100 gapped open above 2500, and has cleared weakly resistance as the index made an 11 year high. Support on the Nasdaq is seen near the old highs at 2440. The S&P 500 also pushed higher and also experience a bullish golden cross (the 50-day moving average crossing the 200-day moving average) in the middle of the week. The strong momentum should continue to allow bullish Openbook traders like Petra09 to reap profits.
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