Market Has Some Fun After Jobs Report

The ES sold off rapidly following the jobs report which left much to be desired. S&P Futures pierced yesterday's low in less than 30 seconds before making a swift reversal back up. My bullish bias ahead of the report was on the money, but actually trading it was a difficult endeavor. One indication that the immediate sell-off might be short lived was the fact that the dollar was not really gaining in concert with the sell-off in the overall market.

And the dollar shouldn't have been gaining. Bad employment numbers are also bad for the US dollar. With growing debt in the US and an economy that depends on consumption to drive it, there is no sign that the economy can really improve with employment staying high. There can be no increase in consumption without an increase in jobs for the American consumer. The 13 trillion US National Debt cannot be overcome without a growing economy. This is bad news for the US dollar because it suggests the US cannot pay off its debt. What's bad for the US dollar is generally good for equities and the US stock market.

Following the news, both the market and the dollar sold off. That correlation could have been a sign to the astute observer to buy the market. If you thought fast (i.e. the sell-off of 7 points on the ES and the reversal happened in less than a minute) you could have bought the market after we pierced yesterday's low. The ES eventually traded back up past 1158, a 13 point gain.

Given the news, if you believe the US dollar should see some further selling, you could feel safe buying into the market this morning. Buying the down-tick is not a bad bet. That being said, I am still looking to scale in short if we trade up into the mid 1060s again...