Industrial Production
Empire State Index
FED interest rate (extended time)
Philly Manufacturing Index
Unemployment Claims.
It is OPTION WEEK. Expect Wall Street’s manipulation.
Next week, Market will focus on the Industrial Production and Empire State Index in early Monday Morning.
A good reading will allow the DOW to continue its rally. Industrials and Materials will be in the spotlight. Caterpillar may continue its short covering and rally, Alcoa Inc may kick start its short squeeze.
Financials may also continue their bullish rally.
DOW has two options: To form a double top, or to break out.
Why double top? Recovery is weak. Market was overbought. Market players were too optimistic.
Why breakout? Recovery is still taking place. Market is fairly valued and is optimistic of a complete recovery in 2011. Triggers: Industrial Production. Shorts will be squeezed. Stocks are still trading below their average P/E.
The global recovery is taking place. US unemployment claims are reaching normalized levels of 350k. Currently it is at 470k from a high of 650k.
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