Wrong timing of easing by Central bankers of China, Europe and England

Non Farm Payroll of 90k is expected

In the span of less than an hour on Thursday, China’s central bank and the European Central Bank cut interest rates and the Bank of England stepped up its economic stimulus program. The BoE as expected decided that printing another 50b pounds will help their economy. The ECB cut rates by 25 bps to .75% also as expected. They also cut its deposit rate to zero from 25 bps, giving zero incentive now to European banks to park money with them. China cut its lending rate by 31 bps and its deposit rate by 25 bps and gave banks leeway to offer loans at rates up to 30% below the benchmark level. The economic data are coming out bad but its not bad enough to add stimulus in the economy. If the doctor gives medicine for the flu ahead of time, it could be bad for the patient. Global central bankers have already overdose this market with free money. I think this was a wrong timing of easing, as market is expected to get worse in coming month especially August - October period. 

Today, Dow Jones Industrial Average (DJIA) closed down 47 point, S&P500 is down 6.5 point and Nasdaq up 0.04 point. In last four trading days, (DJIA) is up 441 point, S&P500 is up 52 point and Nasdaq is up 154 point. For the month, Dow Jones Industrial Average DJIA is up 800 point, S&P500 is up 92 point and Nasdaq is up 216 point. 

Jobless claim has been rising since march but there is a new trend that's going on with the report of jobless claim. Its reported less at the time of reporting and then its revised higher next week then the data is compared with the revised number. This minimises the impact of negative data and headline number looks good. New jobless claim showed 12k lower then expected, instead of 14k. 

Now the focus will shift on tomorrow's non farm payroll. Expected is 90k, while previous month was 65k. Market will rally if its 90k or above but there could be sell off, if it falls below 85k. 

Trading Strategy for Jul 6th: 

Market is expected open lower tomorrow as market closed in bearish zone.

For Bullish sentiment to continue: Dow needs to break 12922, while S&P500 needs to break 1374. 

For Bearish sentiment to continue:  Dow needs to break 12869, while S&P500 needs to break 1364.

After Hours Gainer:

Symbol	Company Name	Last	Change	Change %	Volume
CFBK	Central Federal Corp.	1.91	+0.52	+37.40%	200
SSH	Sunshine Heart Inc.	3.55	+0.54	+17.92%	275
SAPX	Seven Arts Entertainme ...	0.04	+0.00	+11.42%	1,000
ECTY	Ecotality Inc.	0.55	+0.04	+7.84%	600
RITT	RIT Technologies Ltd.	3.09	+0.20	+6.92%	600
ZLCS	Zalicus Inc.	1.26	+0.07	+5.88%	118,750
XRTX	Xyratex Ltd.	12.36	+0.64	+5.46%	116,872
DNR	Denbury Resources Inc.	15.75	+0.67	+4.44%	8,380
AMAG	AMAG Pharmaceuticals Inc.	15.41	+0.59	+4.00%	11,601

After Hours Loser:

Symbol	Company Name	Last	Change	Change %	Volume
NEWL	NewLead Holdings Ltd.	1.20	-0.25	-17.24%	100
VSTM	Verastem Inc.	10.09	-1.08	-9.67%	100
PRMW	Primo Water Corp.	1.24	-0.11	-8.15%	25,200
VVTV	ValueVision Media Inc. ...	2.13	-0.17	-7.39%	18,100
ASYS	Amtech Systems Inc.	3.96	-0.31	-7.26%	10,100
ALSK	Alaska Communications ...	2.20	-0.16	-6.78%	17,600
HBOS	Heritage Financial Gro ...	12.34	-0.83	-6.30%	100
STX	Seagate Technology Inc.	23.65	-1.43	-5.70%	166,622
FMNB	Farmers National Banc ...	6.05	-0.36	-5.62%	100
BONE	Bacterin International ...	1.28	-0.07	-5.19%	200

Stocks for Day trading: UVXY, XIV, SVXY, TVIX, GLD, TZA, FAS, FAZ, GMCR, NOK, PCX, WLT, ACI, HAL, MT, X, FSLR, TPX, RVBD

Stocks for Option Trading: CAT, XOM, SPY, QQQ, IBM, PCLN, AAPl, WLT, PCX, GOOG, MT.

Upcoming FDA approval  : SLXP on July 5th and VVUS on July 17th.

Dividends

	SYMBOL	COMPANY	AMOUNT	EX-DATE	PAYABLE	RECORD	DECLARATION
	DD PR A	E. I. du Pont de Nemours and Co	$0.875	6-Jul	25-Jul	10-Jul	25-Apr
	DD PR B	E. I. du Pont de Nemours and Co	$1.125	6-Jul	25-Jul	10-Jul	25-Apr
	GIS	General Mills Inc	$0.330	6-Jul	1-Aug	10-Jul	26-Jun
	T	AT&T Inc	$0.440	6-Jul	1-Aug	10-Jul	29-Jun
	SBC.BA	AT&T Inc	$0.147	6-Jul	1-Aug	10-Jul	3-Jul
	VZ	Verizon Communications Inc	$0.500	6-Jul	1-Aug	10-Jul	7-Jun

Economic calendar:

TIME (ET)	REPORT	PERIOD	ACTUAL	FORECAST	PREVIOUS

8:30 am	Producer price index	June		0.1%	-1.0%
8:30 am	Core PPI	June		0.3%	0.2%
9:55 am	UMich consumer sentiment	July		74.0	73.2

Today's Event (EST): 

TIME (ET)	REPORT		ACTUAL	PREVIOUS

8 a.m.

Brazil inflation IPCA

Jun

0.36%