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LPL Financial chief market strategist Jeffery Kleintop argues market data suggest the Fed is unlikely to alter the bond-buying program.
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For more on the markets -- -- -- in January jobs number we turn to Jeff -- top chief market strategist for LPL financial.
The unemployment rate rising to seven point 9% in January and the economy didn't add as many jobs as expected get the Dow hit the psychologically key level -- 141000 this morning.
Retracing it as we speak for the first time since 2007 -- -- you've been watching these movements vs.
How you reconcile the rally and the economic backdrop.
Well I think the data we got today it was kind of goldilocks data wasn't too hot it wasn't too cold.
The data wasn't terrible didn't suggest the economy was starting on a new path of weakening.
But it wasn't hot enough to suggest that the Fed needs to pull back stop or slow they're quantitative easing program so it keeps that.
Don't fight the Fed rally intact but the same time suggests ongoing sluggish economic growth for the US.
All right so let's take the rally here we've been marching on grinding on you know every time we hit these levels he's even numbers if you will there's always.
One step forward two steps back so how long do you figure it'll take -- -- -- -- safely above this level for the Dow.
You know little Gloria I think we got -- 141000 assuming you're -- thirteen thousand right we -- in February of last year.
And we were up and down and happened at a -- -- wind -- behind until December.
-- mr.
for 121000 we hit that in 2010 and February didn't leave -- behind till December I think that may be the same case this time so the right strategy is.
As we hit this 141000 in February.
Look to buy the dips and expect maybe later this year we break out of the range to the upside.
But -- -- -- what's working Winger and a trading range and that means home -- it means transports and industrials are the way to go pick them up don't get greedy when they only see maybe 345%.
Pullbacks in this market.
That's where you wanna do you shop.
Are you buying into the January barometer this year January so goes January so those -- -- the -- so to speak.
So let the old adage write -- and in truth it's worked over the long term since 1950 it's -- about 90% of the time when stocks are up in January there were for the -- promised.
Has it worked in recent years did work in 2009 or 2010.
-- January was down we still solid gains for the year and in 2011.
We saw a gain in January but stocks were overall -- Are we really -- to the model for little trends are you looking at -- great rotation debate in all these big banks today stating watch out the bond bubble may finally burst watch those interest rates they might pop up sharply.
-- but no I don't think that's really the -- I think the flows are interesting ones -- that we're not.
So -- -- selling out of bonds we are for the first time seeing buying of stocks and so what's interesting to to take a look at what the last time we saw buying.
For a month for US equity mutual funds.
It was April of 2011 that was actually the peak.
For they year -- like that it could suggest we're in for a period of consolidation here again -- time to buy the dips signaled by that inflow in the US mutual fund data.
Jeff I got thinks -- had a weekend.
