The Gilmo Report

June 7, 2020

June 6, 2020 2:46 pm ET

A “shocking” jobs number on Friday sent the indexes blasting higher. Expectations of a loss of 8.5 million jobs were sent packing as the Bureau of Labor Statistics reported a 2.5 million job increase for June. This comes on the heels of a revised loss of 1.4 million jobs in May and 20.05 million jobs lost in April.

Unemployment remains high at 13.3%, so some might wonder what all the fuss was about. But as I’ve said many times before, trying to think of this market in logical terms is generally not a fruitful endeavor. In addition, as I noted last weekend, there is enough liquidity out there so that when news is viewed as benign or favorable it can trigger big rallies. Nothing new here.

All you can do is watch the stocks and go with the set-ups, and there were enough to be had before everything blasted higher based on my discussions in recent reports earlier in the week. The NASDAQ Composite Index surged to all-time highs Friday on big volume and has held above its 20-day exponential moving average since early April.

 

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