Today the January U.S. jobs report was released and showed that the U.S. added 257,000 new jobs, but perhaps more significantly it reported that average hourly earnings jumped 0.5%. This reverses the December decline which, had it continued, may have given the Fed a good reason to delay an interest rate hike. So for now it looks like we are still on track for a mid-year (June or July) rate hike. This may be spooking the markets today as the broad stock market has been falling (at the time of this writing -1:30 pm EST ) as investors have been analyzing the jobs report data since its release earlier in the day. In early day trading, however, the DOW, S&P 500, and NASDAQ all made new monthly highs approaching their yearly highs of late Dec. 2014. This is certainly bullish, but we are still in a timing zone for a significant reversal from the top of a rally. We are going to wait and see if this rally can continue into next week and if all three indices can clear their December highs. If they can't and the market stalls, we may have a good spot to sell short. Still on the sidelines.
My suspicion that gold and silver prices would move lower is proving to be correct as both metals are down strongly today. I will analyze this development more thoroughly during the weekend, but right now it appears we should be looking to go long soon in both metals as a short-term cycle bottom seems imminent. On the sidelines for now.