Today is Sat, September 23, 2017 0:25:08 GMT
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Contributors While Everyone Was Watching the Employment Data, Here’s What I Was Watching.

Today’s employment and unemployment data came out on a positive note. The U.S. created around 200,000 jobs which is better than the 100,000 last month or the 152,000 estimate for this month.

The unemployment rate came in at 8.5%. This was far better than the estimate of 8.7% which was also what the unemployment rate was at last month.

The weird thing is that the stock market didn’t rally upon this news. That’s concerning. However, here’s what I’m watching to see if any stock market rally that we get is “for real”.

I’m watching the bank stocks: Bank of American (BAC), JP Morgan Chase (JPM), Wells Fargo (WFC), Citigroup (C), etc.

Any sustainable rallies will have the financials rallying along too. Also, the banks have been shunned like a plague for a couple of years or so now. So I’m watching to see if this segment of the economy turns around. If it does, then there’s high hopes for a sustainable stock market rally. If these stocks don’t recover though, then it could be another rough year.

So far, Wells Fargo looks to have broken its downtrend. JP Morgan “may” have double-bottomed but that’s not confirmed just yet because it hasn’t officially broken its downtrend line. Citigroup is coiling up in a sideways triangular fashion and it would need to break to the upside as well. Bank of America has had an impressive pop higher over the last couple of days but is still in its downtrend for now.

I’m eyeing the trend of banks so I can see if a rally in the stock market is genuine or not.

If these banks turn around and stocks rally, then I’ve got high hopes for the “risk on” currencies.

We’ll know soon if stocks have some legs once we see what these banks do. For years, they’ve done nothing but gone down. Will this be their year to turn around? We’ll know soon…and this will tell us a lot about the overall stock market AND the riskier currencies.

Sean Hyman
My E-Book
Editor, Currency Cross Trader

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