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Headfake

This is a syndicated repost published with the permission of Slope of Hope. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

The market reaction to jobs reports is similar to Fed announcements – – you can never really tell what’s going to happen based just on the initial move. When the dismal jobs reports tumbled out this morning, the strong move in ES and NQ disappeared in no time. However, the market decided that bad news is great news, and it’s been up ever since.

I’m not going to pretend this is good news. In fact, it kinda sucks, because it’s wrecking the formerly clean top. We’re pushing deep into the pattern, diminishing its importance and utility. I’ve lightened up [on shorts- Ed.] even more.

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