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Jobs report threatens two favorite trades

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

Charts show that two popular long trades are at risk, especially if Friday's jobs report surprises to the upside.

Bank of America Merrill Lynch technicians shared their analysis and revealed how two big asset classes could be impacted if economists have set their sights too low for August payrolls.

The big market fear is that the jobs report on Friday could be stronger than expected and push the Federal Reserve toward hiking rates. This concern has grown after Fed officials last week said they could hike as soon as September depending on the data. According to Thomson Reuters, economists are forecasting 180,000 nonfarm payrolls, but market chatter focuses on what would happen if there were a 200,000 plus number.