A better than expected jobless-claims figure was overshadowed by an overwhelmingly disappointing ISM non-manufacturing reading. Sellers dominated the day pushing stocks lower all day as volume rose on the day. The NASDAQ now with two days of distribution and the S&P 500 with four it certainly appears this market is going to play games with both bulls and bears. The late day rally was even lame as it appeared the market was going to coast into the close and a wait tomorrow's job report. Our cautious buy signal still remains, but it appears it is in jeopardy.
LNKD posted its earning after the market close and the stock responded positively. The company has posted amazing sales growth the last few quarters and the past two quarters of EPS have been outstanding. Not too many companies can sport more than 100% of sales and earnings growth like LNKD has. It is no question companies are turning to LNKD for hiring purposes, but will it translate to jobs growth? We'll certainly find out tomorrow if this economy has been able to produce any jobs.
Facebook (NASDAQ:FB) hits the market soon and with the IPO set to price anywhere between $28 and 35 will make Mark Zuckerberg an instant Billionaire. Quite the story and amazing what you can do with a business. LNKD came to market and my recollection of the day was LNKD pricing near $45 and catapulting to more than $120 a share. It would not surprise me one bit FB does not do something similar. Don't bet on it, but it isn't out of the realm of possibilities.
Tomorrow will be just another day, the jobs report is something the CNBC/Bloomberg/FBN talking heads can fill the airwaves with. Their job is to (this is key so remember) sell advertising and not to make you money. Have a sound game plan and execute it. Money management is so pivotal in this process and without it you will be left out to dry. Cut your losses and have a great weekend.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.