ESP Tuesday. The Waiting is the Hardest Part. Plus, Two New ESP Picks.

This week's NFP number could make or break the Santa rally.

As the late Tom Petty once crooned: “the waiting is the hardest part.” And that’s where Wall Street is this morning, ahead of this Friday’s Non-Farm Payrolls report.

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Yet, as Wall Street waits, we continue to prepare. This morning, I am adding two new picks to the Extended Stay Portfolio (ESP). Both stocks are on the verge of breakouts. One is a tech stock and the other is a homebuilder.

Market Update

The major indexes continue to trade in tight patterns ahead of the NFP number. The New York Stock Exchange Advance Decline line (NYAD) has pulled back slightly after making a new high last week. It’s still above its 20 and 50-day Ma’s, which is reassuring.

The U.S. Ten Year Note yield (TNX) is below the 4.3% yield area and is now testing its 200-day moving average. A bullish NFP number should move TNX below this key support level and could take it to 4%. That would be a very bullish move for stocks.

Bitcoin continues to consolidate as traders take a rest. The RSI is off of the overbought ledge (RSI above 70). I am hedged on Bitcoin right now, but remain bullish longer term. You can find further details below.

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