Home Stock Market Commentary Job Numbers On Tap + LPSN TO MOVE TODAY? (Friday Special) –...

Job Numbers On Tap + LPSN TO MOVE TODAY? (Friday Special) – Mike Swanson (05/03/2019)

Monthly job numbers are on tap today, but I doubt that they will have a huge impact on the market by the end of the day. Sure they can gap it up or down, but the opening gyration MUST be put into context with the big trend.

And as I said this week the reality is that the US stock market is now extremely overbought so look for it to pause to work off that condition or dip a little. Really it probably won’t do much for a few weeks now.

Every morning the President of the United States gets a daily intelligence briefing on the biggest news of the day. This email that you get from me every day is just like that – it shows you the key news items impacting the financial markets and more before the opening bell every trading day.

On Monday I talked about four stocks I was watching this week and listed LPSN as a potential breakout candidate as it was consolidating and set to report earnings.

Well, yesterday it reported earnings after the close so today I will be watching to see if it can rally above its $30 resistance level and move into the close today or if it will actually break down.

Take a look at the chart.

Now be careful with this stock on the open. Stocks often gap up or down on earnings then reverse. AAPL in fact just did that the other day by gapping up on news that it was doing massive buyback boost worth billions and then gapping up and fading the rest of the day.

But this stock has been trading in a range now for long enough to get the Bollinger Bands to come close together, which tells us that a move one way or the other out of the range is coming soon.

The tight Bollinger Bands tell us a big move out of earnings is likely, but not what direction it will be. Some people play such situations by using options straddle strategies.

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