Stocks closed higher for 7 of the last 8 sessions in April. That is going to be a tough act to follow in May. The key for this week, and perhaps the whole month of May, will be the slate of jobs reports on the way. This is especially true given the weak GDP report.
Why's that? Investors need proof that this low reading of +1.8% is truly just a soft patch that is transitory in nature. So we need as many things as possible that tell us the future will be brighter. Plain and simple, an improving jobs picture bodes well for higher incomes and higher spending and thus higher GDP in the future. If these reports are weak, then quite likely the recent leg of the rally will stall out and a modest correction would be on the way. We'll discuss this later in the week as the data comes out. For Indonesian stocks, as long as your recent stakes are technically in the position anticipating a sustainable downtrend breakout, you will most likely survive the so-called minor pullback. Story may be quite different for those who have relentlessly chased stocks to the sky limit, you would better watch out because Santa Clause is not coming in May just to save you. '+'
