Friday, January 6, 2012

Pre-market setups for January 6

Despite continued weakness in the euro over night, pre-market futures in the U.S were mostly flat, with a small downside bias prior to jobs report.  The BLS report released at 8:30 AM showed a strengthening in the employment market for December as the economy added a surprising 200,000 new non-farm payroll jobs.  The unemployment rate dipped a bit to 8.5%.  Futures rose after the news release.

With the first 3 trading days of 2012 off to a firm start, and having booked some nice gains, I'm not inclined to push too hard today.  It could be that the market has been rallying in anticipation of a better jobs picture, so some profit taking would not surprise me.  

That said, there are a fair number of good setups that continue to show up.  Last year, most rallies had limited follow through and staying power, so traders are still wary for any weakness that may surface.   The Fed most certainly is watching continued weakness in the euro, and that could prompt more action by the Fed to stall dollar strength.

ALWAYS use stops to limit your losses.

These are not listed in any particular order:








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