With green shoots bursting into tulips all over the garden, the market can probably withstand a disappointing employment report tomorrow. While employment anecdotes like ADP and jobless claims are showing signs of improvement, expecting government bean counters to catch the shift in anything approaching real-time is probably too much to ask.
Given the radically improving sentiment among investors, a poor employment (or two, or three) report can easily be explained away as a lagging indicator. A good number just confirms the known…
Given the nearly vertical rise in equity prices over the last two months we could see a pullback at any moment, no matter the data. Same can be said for the reflation trade in general. Best bet is probably to book a few profits (or leave trailing stops) if you have them and look to re-establish on dips.
