“U.S. Stocks Jump in Final Hour, Pushing Up Metal Prices; Dollar Pares Gain U.S. stocks rose in the final hour of trading on speculation the European Union may propose a solution for Greece’s budget deficit, reports Bloomberg.
This end of day soundbite provided the fodder/excuse for a short-covering rally on the Feb 5 NFP report. Traders and investors should recall that the 2009 low was set on the March 6 NFP report, that the 2010 high came on the day following the Jan 8 2010 NFP report and that the crest of June 5 2009 leading to the June swoon of 2009 came on a NFP report. Obviously, the spark for the short covering today had nothing to do whatsoever with the NFP report, but alas, how often do market buying and selling climaxes occur on NFP dates give or take a day? Plenty, and too many for me to recount to you off the top of my head, but longtime clients know to look for and expect equity buying and selling climaxes on key announcement dates such as NFP reports. End of story, period!