• Revenue Cycle Management
  • COVID-19
  • Reimbursement
  • Diabetes Awareness Month
  • Risk Management
  • Patient Retention
  • Staffing
  • Medical Economics® 100th Anniversary
  • Coding and documentation
  • Business of Endocrinology
  • Telehealth
  • Physicians Financial News
  • Cybersecurity
  • Cardiovascular Clinical Consult
  • Locum Tenens, brought to you by LocumLife®
  • Weight Management
  • Business of Women's Health
  • Practice Efficiency
  • Finance and Wealth
  • EHRs
  • Remote Patient Monitoring
  • Sponsored Webinars
  • Medical Technology
  • Billing and collections
  • Acute Pain Management
  • Exclusive Content
  • Value-based Care
  • Business of Pediatrics
  • Concierge Medicine 2.0 by Castle Connolly Private Health Partners
  • Practice Growth
  • Concierge Medicine
  • Business of Cardiology
  • Implementing the Topcon Ocular Telehealth Platform
  • Malpractice
  • Influenza
  • Sexual Health
  • Chronic Conditions
  • Technology
  • Legal and Policy
  • Money
  • Opinion
  • Vaccines
  • Practice Management
  • Patient Relations
  • Careers

Friday's Market Action May Tell If Rally Will Continue


A weaker-than-expected jobs reports may put a damper on the recent stock-market rally. We'll be closely watching the last hour of trading Friday to see if recent technical indicators that point to a continuation of the rally are correct.

Stock market technical indicators -- combined with an overall shift in some recent economic factors -- look a bit better and have created a bullish tone, at least short term. It’s a fairly equal balance, and case can be made for the market to begin to break out and move higher from here.

Friday is a key pivotal day, with the widely watched unemployment rate, nonfarm payroll and average hours worked. Consumer credit data also will be announced, and although showing improvement in terms of increased savings and unwinding debt, usually is a non market moving event.

Friday’s activity will probably determine if the rubber hits the road, so to speak. An important area to us relates to the quality and strength of institutional participation.

The employment report announcement on Friday has been widely expected to disappoint. The U.S. Labor Department’s closely watched reported shows that payrolls in July declined by a greater-than-expected 131,000, after dropping 125,000 a month earlier. The rate of unemployment rate held steady at a seasonally adjusted 9.5 percent. Economists had expected a drop in payrolls of 60,000, with the unemployment rate slightly higher at 9.6 percent.

There may be a few positive aspects to the dire employment situation. For one, other data suggest that the unemployment picture is shifting. Better skilled, talented professionals may be moving upstream to better jobs thereby creating a vacuum of jobs beneath it to get filled.

Stocks appeared set to slide in response to the early data. We’ll wait to see the market reaction before increasing our exposure. However we are poised to become more aggressive depending on the reaction.

The last hour of trading Friday could prove important to keep an eye on. If the market is listless and doesn’t react much, then individual stock picking is paramount -- especially if the rally continues to float on light volume. We will post a more detailed journal after a couple more days of observing the market structure and technical development. There are some remaining overhead issues the market faces in order to move much higher from here.

This material presented here has been obtained or derived from sources believed to be accurate, but we do not guarantee its accuracy and it may possibly be incomplete and condensed. The opinions expressed are based upon our study and interpretation of available data. This is not a prospectus; no effort on our part with respect to sale or purchase of any securities is intended or implied. Any stock noted herein is not, and should not be construed as a recommendation or rating to buy or sell any security. Such stocks are intended for illustrative purposes only. It is possible that at this date or some subsequent date the officers, directors and/or shareholders of Sierra Capital Investors, Inc and its affiliates may own securities or buy or sell securities mentioned herein or those not so mentioned.

CAN SLIM® and variations are marks of Investor’s Business Daily, Inc. and affiliates (‘IBD’). The CAN SLIM® Certified mark is licensed by IBD only to signify successful completion of IBD’s CAN SLIM® Training program. IBD does not license, review or approve of, and is not responsible or liable for any investment advice or other services provided by the user. The user is not an agent of, sponsored by, affiliated with, or owned by IBD and is not authorized by IBD to make any representations, warranties, or promises.

Related Videos
Victor J. Dzau, MD, gives expert advice
Victor J. Dzau, MD, gives expert advice