The S&P finished up just over 0.7% today, breaking the string of 6 down days. The initial jobless claims were disappointing and continued the trend in poor economic numbers.
It is somewhat encouraging for the market to shake off a bad statistic and trade higher. We are not convinced of a turn though, as the market was due for a bounce and the day finished with a give back of almost half its gains from the high of the day. On the positive side also, was the rebound in the financials.
The market will need to stabilize this group at the very least for further upside to continue. A major headwind for the market is the continued resurgence in oil. We think that oil will have to slow its pace of appreciation for the market to have a serious attempt at a rally. We are happy to see the gains for the market but see no reason to adjust our positions in the market as this is possibly a retracement rally and very likely will roll over in the coming days.
We remain defensive.