What a market…
Unemployment numbers were pitiful telling us an interest rate hike from the Fed isn’t likely this year.
The U.S. added just 142,000 jobs in September coming in far below expectations for 200,000. Revisions to August were poor, as well. Gains for the month – initially 173,000 – were revised to 136,000.
Those numbers alone may leave the Fed with no choice but to remain with its accommodative monetary policy language.
Making the jobs report worse is the fact the labor participation rate has now fallen to 62.4% — the lowest read since 1977 — as another 350,000 Americans leave the labor-force…
Yet, the Street finds comfort and rallies 180 points.
While we continue to hold all positions – including gains on ZUMZ and AFL – we’re looking at some new trade ideas, including a very oversold Morgan Stanley (MS).
After gapping from $40 to $32, the stock is now showing signs of strength at early 2014 support. As longa as this line holds, I’d like to see the stock refill its gap around $35 near-term. We can look to profit from that by buying to open the MS January 2016 32 calls up to $3.40.
Stay tuned for more…
Until then take good care…
Ian L. Cooper
Rapid Retirement System