NobleTrading Stock Market Letter, May 6, 2008
The Week Ahead: Employment fell for the 4th straight month in April, but the decline was smaller than expected. Wage growth continues to stagnate as well as consumers cut back on spending. Further evidence could be in the Non-Manufacturing Index for the service sector on Monday. Also, watch the consumer credit numbers and pending home sales on Wednesday. The chain store sales figures and wholesale trade inventories will be out on Thursday. The March trade balance will be released on Friday.
Stocks to Watch: The aircraft components business of Triumph Group (TGI) was solid in the 4th Q beating estimates and recording a strong backlog of orders. Shares of Netsuite (N ) showed a smaller 1st Q loss versus a year ago and sees a potential breakeven 2nd Q, but the shares still made a new low after going public in December of 08'. The aerospace and industrial components maker, Barnes Group (B ), beat earnings from a year ago and boosted there forecast for 2008, but the stock could see resistance at its 200 day moving average.
Special Note: The three major indexes are either at or approaching 200 day moving average resistance. This may limit upside potential near term, but the back-in filling nature of the recent rally may also limit downside risk as well. With the volatility Index (VIX) now at its lowest level since last November look for markets to trade in a relatively narrow range with upside potential increasing the longer the markets stay sideways. One potential positive catalyst for markets going forward is a peak in oil prices followed by a lower gas price trend.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.
Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
Stocks to Watch: The aircraft components business of Triumph Group (TGI) was solid in the 4th Q beating estimates and recording a strong backlog of orders. Shares of Netsuite (N ) showed a smaller 1st Q loss versus a year ago and sees a potential breakeven 2nd Q, but the shares still made a new low after going public in December of 08'. The aerospace and industrial components maker, Barnes Group (B ), beat earnings from a year ago and boosted there forecast for 2008, but the stock could see resistance at its 200 day moving average.
Special Note: The three major indexes are either at or approaching 200 day moving average resistance. This may limit upside potential near term, but the back-in filling nature of the recent rally may also limit downside risk as well. With the volatility Index (VIX) now at its lowest level since last November look for markets to trade in a relatively narrow range with upside potential increasing the longer the markets stay sideways. One potential positive catalyst for markets going forward is a peak in oil prices followed by a lower gas price trend.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.
Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
posted by NobleTrading at
10:39 AM
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