SPTS - Payrolls shock doesn't mean inflation reprieve; Here's a way to position: Alpha Tactics

April’s weak employment numbers threw the markets a curve, resulting in a counterintuitive reaction to payrolls missing expectations by more than 700K.Stocks rallied, with the Nasdaq (COMP.IND) (QQQ), S&P (SP500) (SPY), Dow (DJI) (DIA) and Russell 2000 (RTY) (IWN) all higher.And bonds sold off, with the 10-year Treasury yield (TBT) (TLT) up 2 basis points to 1.58%, making a round trip from the initial tumble to 1.47% after the report hit the wires.Strategists pointed to how the sharp miss in payrolls, and a small rise in the jobless rate, will allay concerns about the Fed tapering bond buying anytime soon. Fed chief Jay Powell says he want to see more than just one good employment report and the tally still stands at one.That cuts the likelihood of a taper tantrum. But the Treasury action supports the notion of a market worried about the Fed letting things run too hot.“We’re walking

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Payrolls shock doesn't mean inflation reprieve; Here's a way to position: Alpha Tactics