After another strong jobs report, the market is set to open higher this morning. After closing in the upper bollinger band yesterday, this morning’s gap higher is a slightly uncommon event. For years John and I have joked about market reversals on jobs reports as it seems to happen more often than not. The gap higher into the upper band also increases the likelihood of a short term market reversal.
With that said, my positions on SDS and CAT are set to open with losses on this market move higher. I plan to stick with my stop on CAT of yesterday’s high and will continue to ride SDS.