The timing of Friday’s dance to the downside, which seemingly came out of nowhere, was a bit eerie. No sooner had we penned a piece talking about the need to have a plan of action the next time the bears come to call than our furry friends seemed to suddenly awaken.
As is usually the case on the first Friday of each month, the majority of market watchers were focused on the Jobs data. The Bureau of Labor Statistics reported that Nonfarm Payrolls, which is one of the most closely followed gauges regarding the state of the economy, increased by 192K in the month of March. The number of new jobs was slightly below the consensus estimates for an increase of 197K and in line with February’s revised 197K. However, the revisions to the prior two months reports were significant as February’s totals were upped by 22K to 197K while January’s job total was revised higher by 15K to 144K.
Stock futures improved after the report was released and it looked like Friday was setting up to be a bullish event. The S&P opened at a new all-time high and both DJIA and Midcap indices joined in on the new high fun.
The Fun Didn’t Last Long
However, the joyride to the upside didn’t last long. As I tweeted Friday morning, the boys and their computer toys didn’t waste too much time before launching an attack on the indices.
David Moenning is the founder and chief investment strategist for StateoftheMarkets.com, a website dedicated to investor education and portfolio analysis. Mr. Moenning is also President of Heritage Capital Management, a privately owned, investment management firm. Founded in 1989, Heritage is focuses on risk management and an “own the best and ignore the rest” equity selection strategy.
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Positions in stocks mentioned: none
The opinions and forecasts expressed are those of David Moenning, President of Heritage Capital Management (HCM) and may not actually come to pass. Mr. Moenning’s opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security or Heritage Capital program. No part of this material is intended as an investment recommendation. Neither the information nor any opinion expressed constitutes a solicitation to purchase or sell securities or any of HCM’s programs. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that investment objectives outlined will actually come to pass. Investors should consult an Investment Professional before investing in any investment program. Neither Mr. Moenning or Heritage Capital Management nor any of their employees shall have any liability for any loss sustained by anyone who has relied on the information contained herein. Mr. Moenning and employees of HCM may at times have positions in the securities referred to and may make purchases or sales of these securities while this publication is in circulation. The analysis contained is based on both technical and fundamental research. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.