I refer to trading days like Thursday as Jello Days. The markets wiggled all day long but went nowhere. The reason, as I explained earlier in the week, was that there is no desire for traders or investors to place any trades ahead of today’s jobs report.
230,000 jobs are expected to be added in November. In addition, there should be upward revisions to the previous month’s reported 214,000 job gains. While the jobs number will take center stage at 8:30 AM, factory orders are reported at 10AM and are expected to be flat.
Adding to Chinese Internet Play
A few days ago JD.com (JD), one of the pieces of our Chinese Internet portfolio did a spot secondary. We managed to get some stock and then topped that off with some purchases yesterday. To reiterate our strategy, we have positions in Chinese internet companies Alibaba (BABA), Baidu (BIDU), Tencent (TCEHY) and JD. The two former positions, which are the largest of the four, have performed quite well, whereas the latter two have been disappointing. Yet, we like the package and will be patient with the underperformers.
Is Santa Clause Coming to Town?
Since the beginning of November, the S&P 500 (SPX) has closed with a change of more than 10 points on five occasions. During that period there were 23 trading days. The last time the index closed with a change of greater than 1% was on October 31. So far, the highly anticipated Santa Claus rally has yet to materialize. I believe that today’s labor report might usher that rally in.
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Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long BABA, BIDU, JD & TCEHY — although positions can change at any time.
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