Although bonds rose higher on the day, they nonetheless closed near session lows, said Brian Kelly, founder of Brian Kelly Capital, on CNBC's "Fast Money" TV show. He also pointed out that utilities closed near session lows too, a sign that investors are anticipating higher interest rates at some point this year.
While bonds did close near the lows, Guy Adami, managing director of stockmonster.com, says investors should stick with the iShares 20+ Year Treasury Bond ETF (TLT) and the Utilities Select Sector SPDR ETF (XLU) and use a stop-loss of $43.50 on the latter. He believes rates are headed lower, which will benefit these two assets.
"People are extremely complacent," said David Seaburg, managing director and head of sales trading at Cowen & Co. At this point, investors aren't betting on a massive upside, but aren't buying portfolio protection either. They're just unsure of whether to buy or sell.
Which is exactly why investors shouldn't "do anything," according to Tim Seymour, managing partner of Triogem Asset Management. Instead of trying to figure out their next move, they should simply stay the course. Stocks have been rocky but continue to knock up against all-time highs. Investors wanted to see the labor report before deciding whether to stick with stocks or sell them.