Dow Jones Industrial Average Violates 50 DMA line
Monday, April 09, 2012
Stock Market Commentary:
Jobs Report and High Inflation In China Hurt Stocks:
The stock market was closed on Good Friday so Monday was the first day stocks could react to March’s disappointing jobs report. The Labor Department said, U.S. employers added 120,000 new jobs in March which missed the +203,000 expectation. The unemployment rate slid to +8.2% which was somewhat encouraging. On Sunday, China said its consumer price index (CPI) rose 3.6% which topped the 3.3% estimate and suggests inflation is increasing.
Market Outlook- Rally Under Pressure
Risk assets (mainly stocks and a slew of commodities) are pulling back again which is considered normal after such a strong move. The key going forward is to gauge the “health” of the pullback to see if it is just another mild pullback within a broader uptrend, or the beginning of something more serious. As always, keep your losses small and never argue with the tape. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!
