The Week Ahead: The stronger than expected employment report now has many thinking that an interest rate cut is less inclined to happen any time soon, but with GDP growth in the 2% range slower job growth is expected ahead. Monday, President Bush meets with EU President Barroso. Wednesday, November's trade deficit and wholesale numbers are released as well as the weekly crude oil and gasoline inventories. Friday brings retail sales and import prices for December and the November business inventories.

Stocks to Watch: Dow stock Alcoa (AA) reports earnings on Tuesday. The stock has been under pressure lately and could find support near 28 before a rebound. Weaker than expected earnings at Motorola (MOT) has this stock reeling, but traders can look for a near-term bounce. Nokia (NOK) was down in sympathy and looks more vulnerable to the downside. Global Payments (GPN) suffered a large price decline when it did not beat an earnings estimate for the first time in 6 quarters.

Special Note: The recent gyrations in the major indexes can be explained as a classic tug-of-war between new money being put to work and overdue selling from last year to delay capital gains to the new year. Regardless, volatility is on the rebound and should be more the norm going forward. Look for January as a whole to be a potential barometer for the 2007 trading year. Continue to hedge positions and diversify into multiple sectors.


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

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