Market disappointed with the weak jobs data, even though the unemployment rate took a small step back from 8.2% to 8.1% in April, nonfarm payrolls added the least jobs ( 115k vs. 163k est.) since November 2011. Stocks gave up almost the entire gains that were generated in late April. On the other hand, fixed income products buoy from this pessimistic employment print, the 10yr Treasury yield is currently trading at 1.83%, which is just 10bps away from its all time low. Looking forward next week, investors will continue to monitor with the initial jobless claims for any possible signal of economy slowdown.
Technical Highlights:
• Stocks took a big step down after disappointed data that led to a clear lower high technical formation for a downtrend.
• Although the moving averages are still pointing upward, equity benchmark internals showed weakness as percentage of stocks above 200 day moving average failed below its support since January.
• RSMCs rallied strong across three defensive benchmarks, which is signaling for a major trend change.
• Stocks continued their way down, defensive is the key trade as historical return points for a positive return potential.
• The yields on the intermediate term bonds appeared negative correlation with the shorter maturity bonds, which may be signaling for short-term pullback.
read more at...
http://plus.alpbeta.com/report/201218.pdf
Technical Highlights:
• Stocks took a big step down after disappointed data that led to a clear lower high technical formation for a downtrend.
• Although the moving averages are still pointing upward, equity benchmark internals showed weakness as percentage of stocks above 200 day moving average failed below its support since January.
• RSMCs rallied strong across three defensive benchmarks, which is signaling for a major trend change.
• Stocks continued their way down, defensive is the key trade as historical return points for a positive return potential.
• The yields on the intermediate term bonds appeared negative correlation with the shorter maturity bonds, which may be signaling for short-term pullback.
read more at...
http://plus.alpbeta.com/report/201218.pdf
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