Weekend Wall Street #29 - The Best Trades & Futures Plans for 2/6-2/11
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Traders, this is going to be a huge week for the markets and we have some great plays lined up for us. Last week, the Fed raised rates by 25bps and signaled we may have more in store, with Bloomberg reporting that there may be a pause in May.
On Friday, the jobs data was very hot with around 500K jobs vs. the 187K expected, and unemployment at a 54 year low of 3.4%, it begs the question - how could Wall Street be so wrong?
Remember, unemployment needs to rise for us to tame inflation.
More jobs -> too much production -> too much money -> higher demand -> inflation.
The key, theoretically perfect, level is 5% unemployment, so this is not good for the market to believe that inflation will continue cooling.
The market closed red after multiple green days on Friday.
Let’s take a look at our upcoming economic calendar:
There’s not many actual data releases, but there’s a Fed speaker almost every day and the market will be listening to their tone in their speeches.
We also have a pretty big earnings week and here is the calendar below:
S&P 500 Trade Plan: