WHY ARE INVESTORS BUYING THE DIP AFTER WEAK JOB REPORT?!?
In a Nutshell
Markets sold off sharply after a weak February jobs report showing -92K private payrolls (vs. +65K expected) and unemployment at 4.4%, wiping $800B from stocks, yet investors are buying the QQQ dip near key support (595-600) due to AI-driven Mag 7 strength (e.g., Nvidia at $182) and expectations of recovery. Avoid aggressive shorts at support or longs at resistance; trade the 595-620 range cautiously with small position sizes, especially amid oil's 30% surge to $106-107 on Middle East tensions and airline ETF JETS pullback opportunities. Join LPP live trading for daily sessions, beginner libraries, and group chat at a discount.
These notes were generated by AI and may contain inaccuracies.
Markets are in the red due to negative selling pressure in the pre-market session on March 6th at 8:53 a.m. in Arizona. On the 30-minute timeframe for QQQ (NASDAQ ETF), markets tried to ignore fear from Middle East attacks and recover, boosted by Trump's messages about thriving economy, but sank back. Trading in a tight range for about a month with common support at 595-600 and resistance higher.
US economy lost 92,000 jobs in February, missing estimates; unemployment rate at 4.4%, up from expected 4.3%. Over $800 billion wiped from stock market in minutes from open. Non-farm private payrolls expected +65,000, actual -92,000; overall non-farm payrolls expected +58,000, actual -86,000. Labor market worse than expected, alongside lack of consumer spending, rising unemployment, and inflation. Markets still near all-time highs despite red flags.
Check economic calendar: non-farm payrolls released one hour before market open.
Current administration reassures markets are great and economy will thrive. AI boom supports QQQ via insane valuations of Mag 7 companies: Nvidia, Amazon, Google, Meta, Microsoft. Nvidia at $182, establishing support for another swing up. Investors buy dips because markets recover.
In live trading with LPP team, took position in MSTZ (held overnight, 1,000 shares, made $400, now closed). Not shorting now. Market conditions support recovery. On 1-hour timeframe, trading 595-620 range for past month, not breaking out. QQQ lows at 595-598, closer to support than resistance. Opening short at oversold support levels doesn't make sense technically.
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