The Week Ahead: The Dow Industrials all time highs of last week has confidence brimming across the market place with Daily Sentiment Index readings in excess of 92% bulls as few traders believe a decline is in the offing, albeit a bearish contrary
signal. Stocks will become especially sensitive to economic reports this week as wholesale trade numbers are released Tuesday, Fed minutes from its last meeting are out Wednesday, a government report on gasoline and crude oil stocks out on Thursday, and October's consumer sentiment numbers on Friday.

Stocks to Watch: GM stock tumbled as Kirk Kerkorian halted his plans to acquire up to12% of the stock after talks to align with Renault and Nissan broke off. Google (GOOG) is marching past near term price resistance as talks to acquire YouTube continue. Micron Technologies (MU) plunged significantly after missing an earnings target and has dropped below the 200 day moving average. Shares of Salesforce.com (CRM) is poised to test its all time high of 42.99 as it broke out of near term resistance after its CEO won a favorable industry award.

Special Note: The sustainability of the rally that started in June on the DOW has been in doubt because of the many intermarket bearish divergences of related indexes both here and abroad. This week the markets will be at the 4 year anniversary of the extreme low of October 2002 except now arguably an extreme high could be forming ahead of a normal 4 year cyclical pattern that usually bottoms with up to a 20% correction or more. Investors should continue to use strategies such as hedging or diversifying into different asset classes.


Commentary provided by Barry ward, Registered Principal at NobleTrading.com, Inc.

Click here to open an account.
NobleTrading Direct Access Trading