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.
Be intentional and calculated: work with the market. Avoid aggressive shorts at support or longs at overbought resistance. Shorts at support no better than buying all-time highs aggressively. Look at larger timeframes for perspective on oversold/overbought levels. At potential support, short small if direction favors (e.g., Middle East worsening), or go long cautiously with position size respecting risk and uncertainties. Riskier trades get less exposure. Beginners avoid going in 100% always, especially with uncertainty.
Oil up over 30% in past seven days from $80 lows to $106-107 highs (US Oil Fund). Bullish due to Middle East war; resolution would drop prices. Higher it goes, riskier—respect position size based on speculation.
Airlines dropped significantly: JETS (airline ETF), American Airlines, Southwest, JetBlue, Delta pulled back from resistance/overbought. Approaching previous support; sell-off may not be over. Considering swing trade video on airlines over weekend if signs of support; like the setup.
Drop thumbs up and subscribe if interested in airlines video. Join live trading sessions Monday with LPP team (one-time payment, lifetime access, current sale). Second link in description to homepage: daily live sessions, private group chat, A2Z video lesson library for beginners (less than $1.10 per day), HUZ video library. Watch before Monday open. End year green.
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