The Week Ahead: American businesses cut jobs at the fastest pace in 5 years as back to back increases in job losses in January and February combined with a record number of home foreclosures intensifies recession fears. The markets will key in on the wholesale inventories report on Monday and the trade balance numbers on Tuesday. More significantly though will be Thursday's retail sales and business inventories followed by Friday's Consumer Price Index.

Stocks to Watch: National Semiconductor (NSM) bounced strongly off its recent low despite a weak tech sector after announcing earnings 5 cents better than street estimates. Ciena Corp. (CIEN) which makes networking equipment also beat earnings estimates by 8 cents and gave a positive growth outlook for 08'. American Axle (AXL) is seen benefiting from its UAW workers accepting buyouts resulting in sharp labor cost reductions. Germany's Allana is said to be in talks with Rockwood Holdings (ROC) to buy the company.

Special Note: The Volatility Index (VIX) may be signaling another period of heightened volatility directly ahead for the stock market. A triangle or flag pattern has developed which typically precedes a sharp directional move in a continuation of the trend that preceded it. An upward breakout would likely coincide with the major indexes testing the next major areas of support. These would be the summer lows of 2006 which are roughly 11,000 on the DOW, 1225 on the S&P 500, and 2100 on the NASDAQ.

Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.

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