Overview:

With NFP being released in a few hours it is important to keep in mind the randomness of the outcome.  This NFP is probably the most important one in years as the European and Chinese economies are starting to show some signs of weakness, the question will certainly be is the US economy slowing as well.

The unemployment data will be a key driver here, though still low by historical accounts, another 0.1% increase could be an initial sign the economy is stalling.

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Summary:

As the market pulls back we will look for signs of further weakness or a potential rally. This is where we can start selling PUTS once again implementing our aggressive options strategy, to buy stocks.  Do not think you missed out on the Cannabis craze.  A market pullback is going to lower all ships in the harbor with few exceptions.  There are some sector rotation stocks that David has on his watch list so there is always an opportunity to trade, it just becomes more difficult and one should lower their percentage risk.

If the market falls apart, gold is sure to rally which is why it is important in our opinion to have a balanced portfolio.  As we have been mentioning for a few weeks now, it was not a time to be adding to position trades, or stock portfolios it was a time to be trimming out.  Even though the rally continued higher, it is not about being the perfect timer, but being positioned correctly when the time comes.

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