THE CHAPMAN REPORT – Stronger than expected job numbers

This week

• Stronger than expected job numbers buoyed the stock market as the S&P 500 jumped 3.1% and is approaching the January highs at 1,150. Targets are now 1,200 to 1,300 once the market makes new highs.

• The stronger than expected job numbers were good for stocks but bad for bonds as bonds once again failed at the 40 week MA and have turned down bearishly once again. Once again supply may weigh on the market with another $74 billion of notes and bonds to be auctioned.

• Gold is approaching its recent highs at $1,150 but the US$ must fall if the market is challenge the highs near $1,225. The US$ hesitated once again but the patterns show that the break could go either way. An up move in the US$ would be negative for gold. However, gold, silver and the gold stocks are all threatening to break out and if the US$ were to rise than not only would gold and the gold stocks fall but stocks in general would decline. As noted above stocks appear to be pointed higher.

• Oil prices rose but natural gas once again fell. For the energy stocks it is oil rising that is the important one and stocks had a good up week.