There are some very loud skeptics questioning this morning's jobs news, but the market just doesn't care. As usual, the bears are caught trying to anticipate a top and the market keeps running, although it is becoming overbought and hitting resistance. There are few things more dangerous than trying to anticipate a failed bounce in this market, but it is hard to resist if you believe in rationality.
In any event, the action is quite strong this morning with breadth approaching 4:1 positive with just precious metals and solar energy weak. Biotech continues to attract speculative money, the banks are coming on strong and homebuilders have regained their bounce. Even chips are finally acting a bit better.
I've been steadily increasing my cash position the last few days, mainly as a function of selling into strength and not finding much I'm willing to add at this point. I've done a few little flips this morning and added to a position in Nam Tai Electronics (NTE), which I discussed recently. NTE is a Chinese contract manufacturer and there are rumors that it has won some Apple (AAPL) business. There is no analyst coverage, so it is tough to have much clarity there, but technically the stock is acting in a very healthy manner and that is enough for me.
We are rolling over a bit as I write and AAPL in particular is struggling, but this market seems to be doing a fine job of ignoring that weakness. If we take out the early lows, it may change the mood a bit so be careful.