Much stronger-than-expected payroll numbers for April have the market trading strongly higher Friday morning.
There is nothing the market likes better than a strong economy and a dovish Fed. It is a "Goldilocks" combination for market players that feast on good growth and cheap capital.
Ironically it was the Fed's lack of overt dovishness on Wednesday that triggered a couple of days of selling, but that now seems like the right posture for the central bank in view of the jobs numbers. A more dovish approach would be overkill when there is this much strength. While President Trump may disagree about how aggressive the Fed should be at cutting rates, the market is perfectly happy with what is happening.
I took some defensive steps the last few days that has me underinvested Friday morning. I'm making a few new buys but I'm going to be disciplined about it.
Twitter (TWTR) is one name I'm looking to add today and I also like the way The Rubicon Project (RUBI) is moving after I discussed that stock Thursday. Enphase Energy (ENPH) is being chased and I'm slowly accumulating a position.
I mentioned Thursday that if you think gold is a good buy when it looks ugliest then it was time to buy. That turned out to work well as it is bouncing back. I'm intrigued by Kirkland Lake Gold (KL) , which has some of the best numbers in the mining group and reports earnings next week.
This market is once again running over poorly positioned market players. Underinvested bulls like me are trying to add exposure and have to resort to some chasing now. The indices are at the highs of the day and gaining momentum.
