The Week Ahead: Despite a weakening economy last quarter, somehow the government found 139,000 jobs it did not report from its previous employment reports in August and September bringing the unemployment rate to 4.4 % through October. The sudden rebound in the jobs report will likely keep the Fed on hold with a bias to raise rates going forward. This week the mid-term elections on Tuesday are the main focus for the market. Also, Wednesday brings September's trade deficit and wholesale inventories as well as October's import prices.

Stocks to Watch: Whole Foods Market (WFMI) dropped 23% on a slowing sales growth forecast for 2007 and many downgrades by analysts. The long term uptrend is still intact and support appears close at hand. Electronic Arts (ERTS) revenue rose 16% and earnings rose 40% as the company upped full year earnings guidance. Celgene (CELG) an integrated biopharmaceutical has been active and rising recently as it will offer 20 million shares of stock to the public and be added to the S&P 500 today. Finally, Red Robin Gourmet Burgers (RRGB) collapsed $12 on weak earnings and a 4th quarter warning.

Special Note: Most political analysts believe Tuesday's election to be either a referendum on the Iraq war or a vote to confirm economic strength. With the Dow hitting new highs, gas prices at lows for the year, and unemployment at mult-decade lows one would surmise a republican majority to maintain control. On the other hand, polls show a clear willingness to unseat the republicans in congress. Markets usually dislike changes in power. Expect a contentious election with many close and disputed races nationwide. This could cause a volatile market with big swings in both direction. Stay diversified across all sectors.


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

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