A De Facto Earnings Announcement

Headed into the jobs report tomorrow morning, it may as well be an earnings announcement for the likes of the U.S. Dollar, Treasuries, gold, possibly even crude leaning down against the key $10.80 prior breakout level on the USO ETF. 

Indeed, we should expect an elevated risk of sizable gaps either way in those aforementioned asset classes, with all of them at a crossroads of sorts. Specifically, the Dollar is suddenly looking coiled up and threatening further upside which could hit a wobbly Euro. Gold and TLT have been hot but tomorrow morning may be an excuse for some near-term profit-taking.

Meanwhile, the Japanese Yen is quietly chugging higher. Even though the Yen is seemingly under the radar here, the Yen strength should not be taken lightly. As the Yen goes higher, it can often dampen global risk appetite at a minimum, if not inflict something more nefarious on equities. 

As a result, I see little edge here in equities in front of this particular jobs number on a summer Friday. I flattened out and am looking to trade tomorrow morning's reaction rather than game it beforehand. 

Amid the whipsaw we have seen in recent weeks, albeit still not far from all-time highs on several key indices, the old Wall Street axiom of, "When in doubt, wait it out," seems applicable.