Friday's Plan

Tomorrow should set the pace for the next few days. Traders have been waiting for the job numbers for weeks and I think they will be bad. How we react to the number is key! If numbers are terrible and we rally that will give the bulls ammunition that the market is ready for a sustainable rally as it has discounted all the bad news. Conversely if we drop on the numbers the bears will have the fuel to push us down, saying the recession is taking full hold on the economy and there is more to come. Whichever way it comes we will play it, as we are traders. Right now I am only have a few options and 2 very small positions I am currently building.
We must take is slow and easy here as the market will take you out if you are wrong.

Don't worry we only call winners here. PERIOD.

Building up a position

I might be early on this but I have started building up positions in the following slowly and will manage them as I think they will prove profitable. Why I am also playing the stocks than the options on these? Well the option pricing is just way too expensive.
Again I have just started to scale into these 2 positions today.

1) FNM -short. What can I say. The housing crisis has just started and FNM and Freddie mac will be teenager stocks before it is all done. I think 100% it could be $12 this year in my opinion. Started to short today @30.80 and will add short to this position if it climbs.
2)SKF -long. Readers know I love this badly. I mean really love this play. I purchased a small bit today at 100.6 and will add over the next few weeks if it goes lower. I think the dust is far from being settled with the banks and brokers. I might be wrong but I will take it here.

SKF

I firmly believes this sees new highs this YEAR. We aren't out of the wood my any stretch of the imagination. Bumpy road ahead and path of least resistance will be down. I am building short positions here as I still think the bulls will try to push us higher

Job Numbers

Job Numbers just came out and they were terrible. Jobless claims are over 400k and with the upcoming wall street and banking layoff scheduled the number will continue to rise. This is bad and have to be looked at carefully as it seems unemployment is on the rise

GOLD

Someone asked me about where I see gold yesterday. I think GOLD has support at $867 area so be careful if you are short as it approaches that area.
Also OIL has support around 99.80

Thoughts

Thoughts about yesterday vary in my mind. News of record money on the sidelines had to go to work for the new quarter. As I mentioned the first few days of the quarter usually has a upward bias as funds have to put money to work in the market. Now yesterday rally has to be respected because it came on very impressive volume in deed but we have seen this before were we just ring up a huge day then die again so we must be careful here. Note I am absolutely bearish long term but right here we might be in a bullish consolidation if it is confirmed.
If we are in a bullish consolidation mode today I look for a target on the S&P first to come in at 1388.5 then 1425 which is suggested by the 78.6% rule. We also have a target on the Nasdaq to watch higher at 2383 and this should be watched carefully as this could act as main resistance on the upside. If we go go down in the next two days look for a support around the 1355 area.
Lets see where we are I started to accumulate some shorts through buying SKF long.
Long SKF $104 (1/4 share) for now

TRADE CALL :SKF long

Going into SKF 1/4 position. and only 1/4.

$104 price.

Just building a position