Smart Money Friday Bonus Update – Dismal Employment Data Rallies Stocks, Plus and Out of Favor Stock Option Recommendation.

NFP data is likely to justify a 25 basis cut from the Fed next week.

Confused traders threw shook their heads this morning, but the stock market breathed a sigh of relief much lower than expected NFP number seems to have put a lid on bond yields for now.  In today’s update, I am adding a new option trade on a stock which has been beaten up lately but has not broken down.

Image courtesy of wealthmanagement.com.

Market Update

Stocks are rebounding this morning as weak NFP numbers give the Fed room to ease rates further. The all important New York Stock Exchange Advance Decline line (NYAD) found support at its 50-day moving average, keeping the intermediate term uptrend intact.

The U.S. Ten Year Note yield (TNX) is struggling to rise above 4.3%, which is a short term positive for now.  This looks like a consolidation pattern for now with the 200-day moving average providing support.  The RSI remains overbought, reading above 70, which is likely to cap the advance in yields for now. 

Meanwhile Bitcoin (BTCUSD) remains within reach of a major breakout with the $73,000 area proving to be a short term challenge.  On the bullish side, there is good support all the way to $60,000 with three large VBP bars looming in the area along with the 20,50, and 200 day moving averages. That combination of indicators in that trading range means that a decisive break below $60,000 would likely signal a major exodus from the asset.

Friday Update

In today’s issue, I am updating my recent Bitcoin recommendations, and the rest of the ESP portfolio while adding a new option play on a stock which nobody seems to want which is attracting some stealth money.

Thanks to everyone for your ongoing support.  I really appreciate it.

Thanks also to all the current Buy Me a Coffee members and supporters.  Special shout out to new members who now have access to the Sector Selector ETF Service, which is included, at no extra charge with your Buy Me a Coffee membership.

For active trading, short term trading strategies, check out the Smart Money Passport Momentum Portfolio.

My new book – “Day Trading 101” is now available, offering easy ways to get started in the trade.

I also appreciate single coffees, which you can buy me here.

You’re the music.  I’m just the band.