Market Tips Bullish

7:15 pm MT: The economic numbers weren't spectacular, and some of them missed expectations, but the ISM beat expectations slightly, and the market rallied. The rally was being pushed by Tech and Financials. About mid-day traders decided that Commodity and Energy stocks were oversold and started buying in those areas. The result was a continuation of the intra-day market rally. Then the market closed strong, which is interesting because Big Money knows very well that the Jobs Report is first thing in the morning. Was Big Money indicating that they believe that the numbers will come in better than expected? Probably so, especially since the estimates are pretty low. It may not be that hard to beat the estimates of -70k on the Non-Farm Payrolls.

The market continues to push into Intermediate Term Bullishness, although it's more of an easing into bullishness, and not a rocket blast into bullishness. Nevertheless, the market tipped towards bullish. I wrote at length how important today and tomorrow were going to be for the near-term outlook in the market, and so far, that has been exactly correct. Now, I am leaning more towards my IT Bullish strategies instead of my IT Choppy strategies.

Energy, Metals/Mining, and Coal in the Commodities/Energy sectors were strong bouncers from short-term oversold conditions. There were a lot of hammers out there today in those areas. I added to my SWN, and picked up calls on RIG, DVN, ANR, and CNX. ANR will be a Friday exit because it has earnings on Monday. I don't like Chemicals, Steel, and Copper as much just yet. But I will look at MOS and maybe a Steel stock tomorrow if it plays out right. I also wanted some Financials, so I picked up calls on MS and GS, although AXP, MER, and several other looked good. PH bounced, and CAT is holding the consolidation, so I am comfortable with my Machinery/Manufacturing trades. I took most of my profits on ADBE for an average of about 39% profit so far. I also took profits on RIMM for about a 12% gain. I may look at IBM tomorrow if I want to have a little more tech, most likely if we get a positive number on the Non-Farm Payrolls. There were a lot of hammers in Energy and Commodities, so consult your Bullish watchlist from those areas for potential buy signals tomorrow. And keep an eye on Financials, some Tech, some Retail, and some Cyclicals (Machinery/Manufacturing etc.).

The market will be looking very closely at the Jobs Report tomorrow. If we get a -30k to -50k then we will probably continue the bounce, but it may only last Friday and possibly Monday. If we get a +10k or greater, then we might bounce all the way to Tuesday, maybe Wednesday. We would also probably move strongly enough that the next Flag/Pullback would present the best swing trade buying opportunity since the Bear Pullback in January.

If we get a bad number, lets say -80k or greater, then it could get very, very dicey tomorrow.