Third Time's A Charm?

Another busy day at the farm as the majors knocked on the door briefly at new recovery highs but then rolled back into the trading range leaving us at S&P 1109. This is the third time we have closed that same exact level since November 16th.

Once again the equity only put/call ratio offered a timely intraday sell alert because we rolled over shortly after it flashed red in this morning's breakout. At some point that indicator is going to lead us wrong, but until it does, we can't easily ignore it.

In the end, it was choppy session which is exactly what we expected. The data overall was mixed, the dollar rallied (yesterday set a higher low in the UUP), and the financials continue to hang on this market like a giant albatross. Not to mention that even the gold bugs are getting nervous about their favorite metal and that's saying something.

Tomorrow will be about preparing for another jobs report and Friday will be reacting to it. As you might expect, a number of people are really hoping that the jobs data will spike us out of the range one way or the other depending on how they're currently positioned. As you probably can guess, that's not my game to game the jobs report. Instead, my focus will be gaming the reaction to it one way or the other. Until then, I'll be trading lightly or not at all.

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