Stocks are looking to trade higher after a week that saw the major averages lose about 2.5%. Housing and manufacturing data pushed stocks lower last week even though we did see some decent jobs numbers.
We will have a slew of economic data this week. Paramount among the news will be the Labor Department’s release of their monthly reading of the jobs market. We will also get a gauge on home prices, manufacturing, construction spending and consumer confidence.
I still believe the market could be under a little pressure this week. However, I did take on a new position for clients last week. I’ve been looking at the dollar for a while and I think we’ve seen the lows in the short-term. I bought the Direxion Dollar Bull 2.5X (DXDBX). This is a leveraged fund that invests in the dollar. I used this trade last year and did very well. However, it can be volatile. So before investing make sure it’s appropriate for your risk tolerance.
In the meantime, let’s see what happened today. Trading should be a little slower due to the Jewish holiday.
As always, let’s have a great day…