Risk: Put a Little Oil on It, Pal

Key Takeaways for Thursday

• Short-term rally possible despite initial pressure on futures

• Japanese easing could boost U.S. treasuries and equities

• Friday's jobs report critical for market direction

• Keep an eye on gold as a barometer of financial system concerns

• Oil prices rising for third consecutive day

This morning, the chatter starts about the sustainability of the Chinese rally. With the central bank trying to keep stimulus in the real economy and away from the housing market, China will find out that the sugar high of stimulus isn’t lasting. 

That will set the tone for additional volatility and questions about how much MORE stimulus China will need to pump. 

This will likely be a long-term process, with trillions on the line and lots of stop-start frenzy. 

We continue to see aggressive selling in the under-belly of the Russell 2000 and lower. Stocks with U.S. exposure are a bit sluggish in the lower-cap tech side, while healthcare has improved. 

On the S&P 500, it’s been a very strong momen…