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As today marks the day for Job reporting to come out I expect there to be a bit of sell off. As the White House has recently downgraded its outlook for the economy, and forecasting unemployment averaging around 9% in 2012 many investors may be eager to sell today, and take there gains since there has been a solid rebound since August 18th. The White House also announced that there is slower then expected growth for the coming years ahead.  Even though the Labor Department has reported Thursday a lower number of people claiming new jobless benefits from the week prior, it does not surprise me. Many may of been unable to file due to the storm in the Carolina s, and the North East as there is still upwards of 400,000 plus still without power, and Million Plus out of power from Saturday into Wednesday. In the end I predict if today’s job reports show anything under 20,000 new jobs the market could see another volatility day.
To stay safe I recommend buying (Direxion Daily Emr Mkts Bear 3x Shs (ETF) (EDZ). This is a wonderful ETF to buy when the market has big sell offs or sell offs for multiple days. If the job report does not meet Wall streets Expectations and there is a 600-1000 point drop in the next few trading days (EDZ) could easily jump back to the $25.00 Range. Currently (EDZ) Closed at $20.40, and in Aftermarket increased to $20.59. If a sell off happens (EDZ) will pop! There is no question about this. (EDZ) could easily eclipse $22.00 + in pre-market this morning. I currently do not recommend Buying anything right now, I would stay clear of Stocks, Hold positions of which you are in for long term, and Buy (EDZ) for some quick gains. There is an easy 13% upside here, and this would be if (EDZ) only pops to $25.50.

 

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Comments
  1. Rob says:

    Great post, you nailed it almost on the head. EDZ popped almost 2 dollars the morning of this post!

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