NEW YORK (TheStreet) -- Stocks bounced back Thursday with the S&P 500 climbing roughly 0.5%. However, it was the rally in bonds that caught the eye of Guy Adami, managing director of stockmonster.com.
On CNBC's "Fast Money" TV show, he pointed out the iShares 20+ Year Treasury Bond ETF (TLT) rose 1.35% on the day. Friday's non-farm payrolls report will ultimately be the catalyst to take bonds either higher or lower.
While remaining cautious on the overall market, Adami said it was a good sign for the iShares Russell 2000 ETF (IWM) and the iShares Transportation Average ETF (IYT) to both be up Thursday.
Brian Kelly, founder of Brian Kelly Capital, remains "very cautious," however, and took off many "risky" positions on Thursday. It's hard to position when it's unclear how the market will react to April's non-farm payrolls report on Friday. He believes oil will go lower, which will be beneficial to transportation stocks, particularly airline companies.
March was a big disappointment when it came to the labor results, said Dan Nathan, co-founder and editor of riskreversal.com. If the April report is strong, it increases the odds the Federal Reserve will raise interest rates sooner rather than later. If stocks rally despite that perception, it's bullish, he said.
However, if the labor report is bad, it will give investors the perception the Fed will delay a potential rate hike. If stocks rally on this news of a slower-than-expected rate hike from the Fed, that's bearish news, Nathan reasoned.