Jobs Week!

Welcome to a new trading week and yes, welcome to JOBS WEEK!

Jobs report this Friday (see economic calendar) is definitely going to be the focus this week once again and yes, a good number could be the reason oil and gold traders need to move back into equities, starting the long awaited rally. A pull out of oil and gold continues to be the last straw the bulls need for a turn of the tide and so far, we are still not seeing it. The good news is, we are seeing a distribution pattern forming in both oil and gold prices, suggesting a possible top. At the time of this writing, crude oil is down $0.67 with a strong resistance level forming at around $105. So, how about the recession? What recession? US GDP came terribly close to recession but surprisingly rebounded last month! This could be a bullet that barely scraped our skin. So, for those still bearish and on the recession camp, its time to re-examine the evidences. Under the prevailing circumstances, the Dow is definitely going to continue trading within a tight sideways channel until the last straw drops and an eruption begins.