Market Intelligence

The SP 500 traded higher during the night reaching 1840 while the VIX traded lower. Later after the unemployment data, we had an exaggerated market move in Bonds, Stocks, Gold and Silver. It was interesting to see that while the SP500 felt about 10 points almost reaching yesterday low, the. VIX did not trade higher.

The extensive data analysis and market internals makes me think that the market is disregarding the number from this morning, are higher prices are not expected in gold.

The Unemployment keeps improving for multiple reasons. In my analysis, we give very heavy weight to Nonfarm Private Payrolls, they came at 87K vs. 198K consensus; some whisper numbers were over 220K. My projections are that overall the economy will continue to grow at about 170K to 200K monthly Nonfarm Private Payroll gains. I most probably continue with the current strategy until have a negative month on the SP500, Nasdaq or RUT.

The European and Asian markets are performing in 2014 and we will start taking a look at European companies (View chart Below) This results in constant gap-ups. We are taking notice of future opportunities in foreign markets.

On the other hand, the Federal Reserve is likely to understand that the December report was anomalous normally this happens in December and it will continue on its path of tapering.

Charts bellow.

Unemployment Rate: USA

Non-Farm Employment Change: USA

Historical

Last 6 Months

SP500 4 Range

VIX 5Min

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