We have one of those days where the folks in the business media are cheering a straight up move but many traders are grumbling as they try to put capital to work.
The S&P 500 has gone straight up following better than expect jobs news but the key to the action is the believe that inflation is still well contained. It is a classic Goldilocks arguments with growth being not seen as hot enough to create inflation but strong enough to keep unemployment at record low levels.
In addition estimates of earnings for the stocks in the S&P 500 are now expected to increase 26.2% in the year ahead according to Bloomberg. Much of that is due to the Trump tax policy and will fall in the following years but its tough to make valuation arguments when short-term growth is so robust.
I'm one of these traders grumbling a bit today as I have more idle cash than I'd like and this action is not making it easy to put it to work.
A few things I've added are PagSeguro Digital (PAGS) the Brazilian Square (SQ) , which reported solid numbers last night and is seeing some 'sell the news' today. I've reestablished a position and will build that further. Key support there is $32
Health Insurance Innovations (HIIQ) is another name that sold off after posting strong earnings and is bouncing off some support around $30 now. I've been adding some today and will be looking for further entry.
QuinStreet (QNST) has been in a high level trading range and is testing recent highs around $14. It is holding at a new closing high now but could use more volume.
Aqauntia (AQ) broke out of a nice chart yesterday and is trying to build on that move today.
This sort of market action doesn't create easy entries. The Nasdaq 100 (QQQ) is straight up 4.5% to a new high. If you are going to try to jump in here you have to make sure you are finding prudent entry points.