Quiet day on the geopolitical front allowed the market to digest previous day’s big losses and start to look forward to NFP# on Friday. A combination of a big sell off just prior to a NFP# seemingly always allows the market a few days to position back for a bounce of sorts. A big gain $>2 today allows for some easing tomorrow and thus market could play right into the bounce idea. Many are citing this divergence today as a victory for the Bulls, but it’s probably nothing more than a breather following a sell off and the jobs# factor ahead. Maybe the market was saying it could live with $100 crude, but it better be sure it doesn’t go much higher before putting all it’s chips into that belief today. (A JPM note on semi’s and GS’ on steel provided the market with something else to talk about and trade). ECB commentary in the morning on watch by markets.
Shadowlist