Fakeout or Breakout?

Profit from the Pros Fakeout or Breakout? They often say "the 3rd time is the charm". So after two failed breakout attempts above 2100 this week stocks did finally close above on Thursday (2105). It would seem that the solid ADP employment report was enough of a preview of what investors will find in the more meaningful Government Employment Situation report this morning. Unfortunately there is nothing assured or straightforward about this seeming breakout. Let me give you the range of possibilities for today. Government Employment report comes in low for 2nd straight month raising concerns about the jobs picture and stocks drop. Or perhaps the employment report is solid, but ISM Services dramatically drops as the PMI Services did last week raising concerns about GDP growth leading to a stock selloff. Or perhaps the employment report and ISM Services are too strong leading to concerns that the Fed may raise rates too many times this year and stocks decline. Or maybe all is peachy keen and stocks continue to breakout higher. In a crazy year like 2016 you can appreciate why there is nothing simple or guaranteed about results today. The solution is to give investors a little time to digest the morning news. Likely by lunchtime a clear path forward will be chosen. Traders should be prepared to ride that new round of momentum from there. Best, Steve Reitmeister Executive Vice President, Zacks Investment Research Sponsor [3 Insiders Know Something You Don't] The Vice Chairman and two Directors have suddenly poured over $387,000 of their own money into their financial midcap company. The Directors had already been awarded shares as part of their compensation but they wanted MORE. Clearly they expect a major price jump. Could it have something to do with the company receiving regulatory approvals to close on two major acquisitions? This stock was just added to Zacks' insider stock portfolio which is temporarily open to from public entry. It closes again Sunday, June 5 . . . [Look inside the portfolio right now >>] [5 Dow Stocks to Buy This Summer] Will this be the summer for the Dow? The season will typically bring about lower volatility, count on the boring blue chips to drift higher. [Read More »] [China Stock Roundup: JinkoSolar Beats, Alibaba Announces Share Purchase Deal] Markets rebounded during the week, powered by Chinese stocks would become part of MSCI Inc.'s global benchmarks. [Read More »] [7 Stocks with Recent Price Strength to Boost Your Returns] Stocks that have recently seen price strength have high chances of carrying the momentum forward. [Read More »] [Investing in the Road Less Traveled] Why options are my favorite way to trade and why you need them in your portfolio now more than ever. [Read More »] [3 Secrets to Successful Insider Trading] To find the diamonds in the rough of insider trades, investors need to know the real stories behind the buys. [Read More »] Sponsor [Increase Investment Returns with Free Zacks' Portfolio Tracker] Follow your investments easily in one place. Get free email updates that alert you to major events affecting your stocks and funds, including time recommendation changes, earnings announcements and, most importantly, earnings estimate revisions. [Click to Learn More>>] [Bull of the Day: Weight Watchers (WTW)] One big reason why this stock is winning, Oprah. [Read More »] [Bear of the Day: Sony (SNE)] Innovative products are all around the world, except here. [Read More »] [New Zacks Strong Buys for June 03] Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »] [Customize Your Profit from the Pros Delivery] Connect with Us: [Facebook] [Twitter] [StockTwits] Contact Info: Phone: 1.800.767.3771 ext. 9339 Email: [support@zacks.com] [Terms] | [Privacy] | [Unsubscribe] [Zacks] You are registered to receive this "Profit From The Pros" e-mail newsletter at {EMAIL}