employment report december 3, 2010

the report was bad in most if not all key data points
unemployment rate up to 9.8% from 9.6%, expected unchanged
only 39k new jobs when up to 150k expected
futures were down nearly 10 points after the release

so, rally over?
i think not as most employment days with negative surprises are up days for stocks.
how long this rally last is the question

on the positive outlook for stocks due to this negative surprise is the tax debate
more fuel will be to extend the bush tax cuts for another year or two for all income ranges
this will extend the stock rally

if this does not happen with exogenous events in the pipes, we will need to re-allocate the chiu index holdings fairly soon

at 10:08am
qqqq at 53.75
4-0 sell
9-3 sell weekly
4-0 sell monthly

gld at 137.05
9-0 sell
9-5 sell weekly
9-1 sell monthly

aapl at 317.98
9-0 sell
2-0 sell weekly
4-0 sell monthly

aapl remains as chiu index largest holding at 6.1%
paul

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