The S&P 500 closed up half a percent today. The Nasdaq fell 1.1%.
Tech led nothing.
Blake Young says that split is the whole story. Money is leaving technology. It is moving into safety.
The reason sits in the jobs data. It is the worst Blake has seen in years.
Weekly unemployment claims have climbed four of the last five weeks. They just hit the highest level since February.
More people are getting laid off and filing.
Tomorrow brings the nonfarm payroll report, one of the most market moving releases of any month. Economists expect job growth to fall from 115,000 to just 85,000.
Blake flagged the trap inside that number. A margin of error near 250,000 means the real figure could be a net job loss.
The revisions tell the same story. Nearly every month for the last year and a half has been revised lower.
Whatever gets reported keeps getting worse.
Blake put the comparison plainly. Outside the 2020 COVID lockdowns, employment last looked this weak during the 2008 and 2011 financial crisis years.
The market is rallying on that bad data. It is doing it without tech. Financials and healthcare are carrying the load instead.
Healthcare is leading after getting deeply discounted this year. Blake has been buying the rotation for weeks.
In tonight’s video, Blake walks through the exact setups catching the flight to safety:
- Abbott Labs (ABT) jumped 3.3% today off a breakout Blake called near $85. His first target is $90.71, then $96 if it clears.
- Thermo Fisher already hit its first target at $499.90. A close above $480 opens a run to $530, and Blake sold puts near $447 to get paid while he waits.
- Constellation Brands sits at the lowest close of the year near $135. Blake sells the put for 2.4% income with a 7.5% cushion before a single dollar of risk.
- Southern flashed a fresh buy signal on today’s breakout. Blake likes owning it for the 3.33% dividend and a possible 10% to 15% move higher.
These are healthcare, consumer staples, and utilities. They rotate days and weeks ahead of the crowd.
Blake breaks down every level, strike, and entry in the full session.
