Ahead of the open, (02-05)

Pessimism towards the domestic economy had grown since initial claims, NFP# showed possible loss of momentum.  This allowed for today’s upside risk (U.S ISM).  Noted the only possible risk was U.S data as far as PMI’s were concerned… "Global PMI’s should be in- line with Flash numbers/expectations. EU zone can’t be any worse and China’s # will likely be ignored as it was after the ‘better than expected’ Flash PMI last week.  U.S #’s will be more in focus, expected to be flat to last Q".   Not only did the # come in at the strongest rate in 10 months, but importantly it didn’t come in like the disappointments seen recently.  A disappointment had become the expectation.  A win-win. All thePMI internals were positive as well. (orders, employment etc.).  All in, ISM was in contrast to recent US data, including previous days Chi # shrugged off here.  Although jitters were eased today for the market, it goes with the tactical long premise here.

As far as mid -day tailspin of 10 SP handles post rally from SP 1415, (RUT closing red, Nasdaq barely in the black).   In this view, it’s a big deal to the same who called out the market yesterday on its poor performance before Dow closed at 4 year highs today.  If market holds the 1400 level tomorrow, it will be forgotten.