Thursday

Employment number came in 8:30 on the rise. Proof that recession is close if not here already. All numbers now point to a downturn in the economy and with commodity prices rising we might just be at the beginning of it.
On to the technicals: It was a narrow range day for the markets yesterday, from the opening to the close anyway, as we did see some whippy moves intraday, but at the end of the session we closed near the unchanged level. Wednesday’s doji day in fact formed an NR 7 bar, the narrowest range of the last 7 days and often suggests a big move the next day, so we could have that to look forward to today.

If a big move is coming we need to be prepared to go either direction, although my short term bias is now to the upside, so that would be ideal trend for Thursday. Either way, I probably look to get aggressive on the first sign of a trend either way. If we coil early and breakout let’s look for momentum trades. If no discernible patterns present themselves early, then we can look for a break of the first hour’s range for a hint to the possible trend of the day. If the NR7 scenario plays out, we could have a nice trend day for Thursday.