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How to trade S&P 500 before US jobs data
As the S&P 500 continues to rise after four consecutive weeks of gains, Trader Serge Berger, also known as "The Steady Trader", explains which techniques he uses when it comes to trading this Index.
Serge says the S&P 500 is interesting for investors because it's still a leading indicator for the global equity trends and it’s "got tons of liquidity". The flood of earnings reports delivered last month and late last week helped drive the market’s upward momentum.
Out of the 75 percent of companies that reported results, 69 percent surpassed investors’ expectations.
The theme for 2013 has been to buy the dips and Serge doesn’t see this changing until the year end.
When it comes to picking a particular sector with the S&P, Serge says financials are always important to look at. He will be gauging how they react to the latest US jobs data - out on Friday. If they continue to fall, Serge says the S&P is going to have a difficult time to push higher.
He also adds that he won't speculate ahead of the non-farms, but is instead reducing positions, and he’ll be looking for the first move to see if it sticks. This means that if the market rallies, he will see if this rise can continue, and then plans to fade that first move if it doesn’t stick.
01:52 minutes
Tags: company earnings, earnings season, fed, federal reserve, financials, index, investing, investors, liquidity, s&p, s&p 500, s&p 500 dips, s&p 500 index, s&p financials, saxo bank, saxo tv, serge berger, the steady trader, trading techniques, trading volume, tradingfloor.com, us economy, us jobs data, us jobs reports, us non-farm payrolls, us non-farms, video