Stocks closed lower again yesterday, with the Nasdaq erasing their gains for the year.

The pullback was a continuation of what we saw for most of the week: rising bond yields prompted by inflation concerns.

Jerome Powell, yesterday, said he expects inflation to pick up in the coming months. But he also expects the increase will be temporary.

While he said the recent rise in yields was "notable and caught my eye," he said he would only be concerned by "disorderly conditions" in the market, which he does not believe we are seeing.

In the meantime, Mr. Powell has said the Fed has no plans to raise rates anytime soon, and that he would clearly communicate a change in policy before that happens.

Traders will focus their attention this morning on the Employment Situation report. The consensus is calling for 175,000 new jobs being created last month (183K in the private sector, and -8K in the public), while the unemployment rate stays the same at 6.3%.

Wednesday's ADP Employment report (often considered a precursor for the Employment report that follows – albeit with a spotty track record), came out with their forecast on the jobs front estimating 117K private sector jobs were created last month vs. expectations for 165K.

We could also see some volatility as the Senate debates the $1.9 trillion stimulus bill. At this point, the market is fully expecting something. But it's likely to look much different than what came out of the House. But their self-imposed deadline is March 14th, which is when millions will begin losing some of their extended federal unemployment benefits.

I maintain that what we are seeing is just normal profit taking and an ordinary pullback taking place.

As I've noted before, stocks usually pull back about -5% roughly 3-4 times per year. (A pullback is defined as a decline between -5% and -9.99%.) So it's quite common.

And with forecasts for big economic growth to come (the Atlanta Fed is estimating Q1 GDP to come in at 10.0%, and others are forecasting full-year GDP to grow at the fastest pace in 38 years), I'm looking at this pullback as a buying opportunity, because it looks like there's a lot more upside to go for both the economy and the market.

So make sure you're taking full advantage of it.

Best,