Thursday brings on a jam packed day of economic data. The data will carry even more weight now than in recent weeks/months due to the current prices in the indexes. This is by far the highest point at which the market will be receiving key economic data since April 2011. In addition, the American Association of Individual Investors (AAII) will have their weekly sentiment survey out.
Before the bell the market will be bombarded with economic reports. The following will all be released at 8:30 am est:
- Initial jobless claims
- Continuing claims
- Empire Manufacturing
- Core PPI
Then at 10:00 am est the Philly Fed survey will be released. If the market had to make a choice, we assume it wants to see manufacturing and the Philly Fed report come in good. The reason we chose those as opposed to jobs is because we feel that they are better indicators of the economy right now. Not to mention that the labor market continues to knowingly struggle. As long as there isn’t a major jump in jobless claims the market should take the data in stride (last week jobless claims rose by 8,000 more than expected and the market still finished higher).
Pay attention to the AAII sentiment survey as well. With the indexes pulling back last week before moving to new yearly highs it will be interesting to see what it reveals. If the survey shows a big jump in % bullish it will be a caution sign. Remember, we want to see people continue to doubt this rally, not get behind it. The longer they doubt it, then presumably the more cash there is lying on the sidelines. You can check on the survey for yourself here.
For those of our members playing SNPK we’d like to see greater than (>) 1.2 million shares trade within the first 5 minutes of the day as the price is rising. We chose 1.2 million because there were 2 spikes in volume on Wednesday of 1.2 million shares each so we want to be greater than that amount to signal there is even more demand Thursday. If we get that criteria, we expect the stock to break resistance at $0.722.
The following stocks were reviewed during Wednesday’s classroom session. The ones with (**) next to them are viewed as having favorable set-up’s right now for day trading. The ones with (*) are simply “on watch,” and Stockhaven is waiting for either a breakout or volume confirmation before they are in play for day trading.
- SNPK** – in play for gaps
- STVF* – in play for gaps
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- SH @ the bell 9/15/2011: U.S. data to be back in focus
- SH @ the bell 12/2/2011: Jobs data in focus; Dow transports signaling “all clear?”
- SH Research 9/27/2011: Expecting disappointing data from Richmond Manufacturing
- SH @ the bell 3/12/12: Focus on these three things
- SH @ the bell 1/10/2012: When will Italy come back into focus?