EB Daily Market Report - Friday, May 10, 2024

Dear Members.

We're getting to close to the end of another week with the Dow aiming for 8 straight green sessions as the bulls show no signs of letting up.

Traders seem to have embraced the most recent jobs report showing some slow down in hiring with rates moving lower since the most recent peak. In fact, the yield on the 10 year Treasury Note is down by about 25 basis points over that period of time. The VIX remains on the low end as well as confidence builds.

I have noticed the equity only put/call ratio is now on the low end which could come into play as we move into options expiration week. So it wouldn't be a complete surprise if we saw some profit taking sometime soon to unwind what appears to be an imbalance of calls to puts. We'll explore that in detail during the upcoming Max Pain webinar next Tuesday.

For now everything seems to be working for the bulls. Let's see how the market closes and Tom will be back with his Weekly Market Report on Monday.

At your service,

John Hopkins