Outlook 02/02: NFP report added 200K jobs in January vs. 180K expected. Revisions were a slight negative, with November's 252K gain trimmed to 216K, and December's 148K revised up to 160K. We'll call the headline number roughly inline. The unemployment rate, as expected, held at 4.1%, with the labor force participation rate also holding at 62.7%. Stocks, gold, and oil are showing little reaction to the number, but the 10-year Treasury yield has jumped to a new high of 2.83%.
/ES Value: YVAH 2827 YPOC 2822.50 YVAL 2815
/ES Plan: Yesterday closed balanced. Overnight is bearish (GBT 2778) moving below yesterday's value, so we've these options:
A) If market remains below LIS-YVAL 2812-2815 with bearish internals, try to be a seller leaning on 2815-2812 towards ONL 2797 and LVNs 2790-2778. Failure to breakdown ONL 2797 early is a signal of a strength.
B) If market starts to move above LIS-YVAL 2812-2815 with bullish internals, try to be a buyer leaning on 2812-2815 towards GAP 2822 and YVAH 2827. Failure to take out LIS 2812 early is a signal of weakness.
Tips: Market broke down the edge 2809, it's a 'Value Transition' and that means a change on value perception. We've to watch closely if new auction range 2812-2790 is acceptable or rejected.
10:00 Consumer Sentiment
10:00 Factory Orders
01:00 PM Baker-Hughes
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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