The Week Ahead: Despite declines in Gross Domestic Product, new hiring continued as evidenced by a steady employment report. This provided new evidence that the economy remains vibrant especially after May's numbers were revised upward and labor costs rose 3.9% year over year. Watch the wholesale inventories release on Tuesday, the jobless claims and International trade balance numbers on Thursday, and retail sales, import prices, and business inventory reports on Friday.

Stocks to Watch: Shares of Target (TGT) moved to new highs after speculation that an activist shareholder may push for the sale of the company's credit card business. The board of directors of Brilliance China Auto (CBA) has decided to de-list the ADS's from the NYSE and trade on the OTC. The market seems to approve as the shares rose. Genzyme (GENZ) fell hard on news their late stage drug for diarrhea failed to meet expectations. Parametric Technology (PMTC) broke down after cutting their 3rd quarter revenue forecast. Finally, American Capital Strategies (ACAS) was added to the S&P 500 Index replacing Dollar General.

Special Note: This week begins the Dow Industrial's 52nd month since the March 12, 2003 lows without at least a 10% correction, the longest on record. Although the market may press higher in its immediate future, it is running against the greatest odds considering an ominous backdrop that includes a potential housing sector meltdown, a sub-prime loan crises leading to a possible credit contraction, extended valuations, and waning market momentum. Balancing portfolio risk seems prudent at this time.


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