At the beginning of every week I will take a look at the broad market as a whole and discuss what important updates will be happening in the week and if any significant reports/earnings will be coming out.

Then everyday I will try to find a new stock that I feel is poised for a big next couple of days and set price targets, stops, etc.

Thursday, April 3, 2008

Friday:

Okay guys so the jobs report comes out tomorrow and let's be realistic it's probably not going to be good. But everyone is expecting it to be bad so what will happen tomorrow.

The Dow is at 12626 with HUGE resistance at 12,750. I think that we will continue to trade sideways for the for-see-able future (into next week) between 12,750 and 11,800.

Probably a good bet would be to either get puts on the dow or to go short on some ETF's. The huge problem that I see is that when the DOW closed below 12,750 the volume was huge. In those 5 down days the dow traded about 5b and was averaging (obviously) about 1b shares a day and since then it's been about 750m and even on that 400 pt day this week the volume wasn't that large to get us back up there.

Furthermore the Fast Stochastics crossed (a bearish sign), along with the RSI starting to decline from about the 60 mark. Also the Chaiken Money Flow (an accumulation/distribution signal) has a divergence (again bearish).

Either way tomorrow really hinges on the jobs report! More tomorrow when I woke up after the Jobs report!
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