Is a Terrible jobs # already baked into the cake 12/4/8
Unless the NFP number exceeds 400,000 or uneployment is over 7.0% we expect a classic case of buy the rumor sell the fact. We are not advocating buying equities but much of the bad news may already be factored in. It appears the three stooges testifying in front of congress have not convinced them to write a check for $35B yet! Most commodities were lower today and although we are using pullbacks as an entry for select commodities you are playing with fire trying to pick a bottom commodity wide. We have suggested for clients to lighten up on size and to be aware of the risk of timing these markets. Additionally options may be more approriate than futures in some instances. We will be looking to buy gold and silver on the setback the next few days. Sugar and natural gas also have our attention. We have once again navigated the waters and profited on the yen looking to buy another setback still looking for a new contract high above 1.1100. We are lsoing in our grain longs but do expect a shift higher in the near future. Stay with May options and we will look for futures entries next week in soy and corn.
Tags: commodity, corn, futures, gold, japanese yen, markets, naturals gas, options, risk, silver, soybeans, sugar, timing, unemployment
