Job numbers help boost market 243,000 new jobs have been reported in January and that is above the 150,000 to 200,000 needed to hold unemployment steady so the rate dropped some. If the jog growth could maintain 250k each month we could get back to 2007 levels in about 5 years. The number reported is not of course an accurate one as it has many adjustments. As an example there were about 42,000 temporary jobs added in December to handle shopping season so they can't very well just take those out in one month so they seasonally adjust the numbers. The number reported this week will be continually revised for months and perhaps years to come. Even if not accurate, it is better than a lower non accurate number.  Here is a graph of the number of people working over the last 10 years and now we are down about 7 million from the high in 2007.

The fantastic market for equities continued this week and on Friday tons of stocks gapped up putting them even more over bought. If we can get any kind of pullback the key will be how quickly and strongly will the buyers step in. As we said at the start of the year - this was to be a period of huge gains and that worked out exactly so how much more can they go? The NASDAQ made a new multi year high and other indices are close so will need to see if break outs for the averages are embraced or sold into. We will get to the charts after this musical intermission.  

Yoko Kanno is a Japanese composer, arranger and musician best know for her work on soundtracks and video games. The animated (anime) TV series Cowboy Bepob was critically acclaimed even having 9+ stars on IMBD, which is quite rare. "The futuristic adventures of an easygoing bounty hunter and his partners." You probably know that the Japanese have a solid fondness for Jazz and Yoko Kanno composed the sound track for Cowboy Bebop and the title track is named Tank. She assembled the band The Seatbelts to do the music for the series and they produced several albums from the series.  Here is a live performance of the show's opening theme Tank. Solidly energetic, can think of no US TV show with such vibrant theme music!

New unemployment claims in the U.S. fell to a lower level than most experts had expected according to figures released by the Labor Department. For the week ending January 28, the DOL reported a seasonally adjusted level of 367,000 initial claims for unemployment. That marks a decrease of 12,000 from the previous week's revised figure of 379,000 - slightly higher than the 377,000 initially reported.    graphs - RTTNews

Payrolls expanded by much more than economists had predicted in January, while the unemployment rate declined. The U.S. economy added 243,000 jobs in January, according to statistics released by the Department of Labor on Friday. Economists had expected an increase of 135,000

The report showed that the unemployment rate came in at 8.3 percent. Economists were looking for the jobless rate to hold steady at 8.5 percent

The Institute for Supply Management-Chicago Inc. said this week its business barometer declined to 60.2 from 62.2 in December. Readings above 50 signal growth. Economists forecast the gauge would rise to 63.

Orders to factories rose in December, supported by a rebound in business investment in capital goods. In addition, service companies grew at the fastest pace in 11 months in January as companies started hiring to keep up with rising demand. Factory orders rose 1.1 percent in December after gaining 2.2 percent in November, the Commerce Department reported Friday. For the year, total orders were up 12.1 percent after a gain of 12.9 percent in 2010.

The Institute for Supply Management said Friday that its index of non-manufacturing activity jumped to 56.8 percent in January from 53 percent in December. The survey's employment index soared to its highest level since February 2006. Any reading above 50 indicates expansion.

Friday, the Labor Department reported that nonfarm payrolls (jobs) increased by a significant 243,000 in January. This chart provides some perspective on the US job market. Note how the number of jobs steadily increased from 1961 to 2001 (top chart). During the last economic recovery (i.e. the end of 2001 to the end of 2007), job growth was unable to get back up to its long-term trend (first time since 1961). More recently, the number of nonfarm payrolls has been working its way higher but at a pace that is not fast enough to close the gap on its 1961 to 2001 trend. In fact, the current number of US jobs is still below its 2001 peak.

This past week's top  sectors.

This past week's indices  - the small caps gained the most.

The monthly charts are still looking quite bullish. The NASDAQ has broken to multi-year highs, the Dow not far from moving towards that 13,000 mark from 2010. If it breaks to the upside there it could also eventually test the 2007 highs at 14,200. The S&P 500 needs to move over 1380 and the Russell 2000 is nearing its all-time highs as well.  

On the 60 min chart we see how bullish the indices have been, breaking out over the top band, going sideways and then running back up to it again. It is very bullish when they push the bands up in this way and you want to see that the Center Bollinger band holds on pullbacks. 

A standalone view of the Dow monthly chart and the overhead challenge towards the 2007 high. 

The weekly chart shows it just moving back inside the ascending parallel channel. 

The daily shows how close it is to closing over the 2010 highs. The MACD is flattening out and the histogram rather flat. The RSI is close to overbought territory but when it made its 2010 high it was a bit over 70. 

The 10 min renko chart shows the steep move up at the start of the day on Friday when the jobs report numbers came out. Then it stayed flat for most of the day. 

There are two sets of Fibonacci projections on this two-day-per-bar Dow futures chart. The first projection based off the last dip had a 161.8% target that was reached on Friday. The longer term projection is based from the 2011 low and has the first 127.2% target at 13,313. 

A closer view on the 120 min chart shows that big move and the breakout of trendline Friday morning and how the Fibonacci level was also R3 pivot  and both together gave too much resistance to allow it to move higher 

The transports moved up only half a percent this past week, still well under the top weekly Bollinger band. 

Utilities stayed in a tight range right on dual moving averages. 

The black chart monthly view of the NASDAQ showing that December volume was up over the November volume. It was not by a lot, but enough to help it along to close in this new territory by a bit. 

And the weekly chart shows it about midway inside the parallel channel so plenty of room to move for a while. It is short term overbought but RSI also has room to run. 

The moving average of number of new high son the Nasdaq made an impressive run to and slightly over the peak it hit in July. This is just what you want to see in a bull market.  

The NASDAQ summation index is now almost 100 points away from its five day EMA as the index  rapidly moved to new high levels.

The NASDAQ 100 closed right at the top Bollinger band So a bit of a pullback this week could be expected. You can see it's  rapid rise this year has basically been pushing that band up. At 78 the RSI is short term overbought. 

The daily NASDAQ 100 futures with two sets of Fibonacci projection levels both short and longer-term. 

The volatility index closed the week at 17. 

The semiconductor index is  back over the trendline and shorter-term horizontal resistance. 

The moving average of the number of new highs minus new lows on the NYSE (lower section) continued to climb and very near former resistance from February of last year. The NYSE itself however has broken above resistance. 

89% of all stocks on the NYSE are now trading over their 50 day moving average. This is quite bullish though it is at levels where we often have begun some pullback in the past but it has can remain above these levels for a month or more. 

The lazy S&P 500 is 136 points above the last buy and within pennies of the 1345 resistance level. RSI on this weekly chart is only at 61 so it has room to run. 

The weekly chart shows it closing at its high and right at former resistance.

Here a closer view on a daily chart and you see it at the top Bollinger band with RSI over 70. Putting it in overbought territory short term. 

On the 60 min chart RSI is also high but medium term it is only at about the center of this ascending parallel channel. 

The S&P 500 ETF 2X long  dipped to sell and below the channel for a couple of days and then switched back to a buy for February. 

The S&P 500 futures chart showing both longer and short term Fibonacci projection levels if it breaks over the  the 1357 resistance. 

Here a 120 min chart with its move to R3 Pivot  on Friday, which coincided with this 127.2% projection. In this timeframe, we see the 161.8% just over 1350. 

The standalone Russell 2000 monthly chart showing its current relation to its all-time high set in 2011. The histogram in this timeframe is still slightly negative and the MACD is just about to cross over bullishly. If those happen, this could start a larger move on a breakout above the all-time high. 

On the daily chart we see the close over the top Bollinger band with RSI over 70 so a candidate for an overbought pullback. 

The move on Friday brought the Russell back up and over this 60 min parallel channel it has been in since mid December. Note that it also took it very close to the measured move of the inverse head and shoulders we pointed out in December 

The 15 min Russell 2000 faster to respond, had a crossover on its MACD and RSI dropped back under 70 by the close on Friday. 

The 3X bullish ETF for the Russell broke above its ascending parallel channel and moved to a secondary one above which was also at the R3 Pivot Friday its RSI remained at elevated levels at the close. 

The retail sector ETF continued its move higher closing at its high for the week. 

The banking sector got a boost this week, moving over resistance as shown. This pattern shows a possible resistance projection at 48 at the 161.8% projection. 

A closer view of the breakout on Friday as it moved up over 3%. 

The 10 year treasury note yield moved up strongly on Friday closing at the 50 day EMA - yield of 1.94%. 

The Dow Jones world market index gained 2.4% for the week and above horizontal resistance. 

The emerging market ETF also closed well above resistance as a continuation from last week's move over the 50 week EM a. 

The FTSE had its biggest pop of weeon Friday moving up 1.8%. The move was rather expected as it had a bullish golden cross this year. 

The Canadian venture composite Index again had very strong volume and moved up 2%. RSI is now back over 50. 

The Shanghai index had dipped during the week, but closed up modestly. 

It had run to the parallel channel top line resistance. So backed off perhaps to gain more power to move it back over and into a course which could take it back to the 200 day EMA at 2500. 

This commodity ETF stayed flat for the week staying above its 50 week EMA. 

Oil dropped 2% this week on increasing volume. 

Oil futures remained over the 50% retracement level at the close. 

Natural gas which had made such a nice move the previous week gave a good share of it back, losing 8%, but closing over the low of the previous week. 

Gold had become overbought and RSI dropped back under 70 with Williams dropping under its 20 line. The 20 day was just crossing above the 50 day EMA and this shows that even though that crossover is bullish, the touching or crossing often coincides with a accelerated move but it could be up or down, and in this case it was down. 

A closer view of the move on Friday. 

Longer term gold futures chart with its close just at this 50% retracement level. 

A shorter-term view showing the drop below the pivot point on Friday as it dropped under the short term trendline. 

GLD had run right up to the top parallel channel trendline before Friday's dip. 

The GDX gold miners ETF 60 min chart closed just at former resistance, now support and the 50 period  EMA for short term if you are long GDX you may want to watch this chart. If it drops under this level, there may be support at the 200 period EMA below 

The gold miners mechanical chart remains on a buy though it dipped on Friday. It has good gains since its last buy signal so consider protecting those. 

Silver futures had run to and slightly over resistance and backed off. The short term projection level on a move back over takes it to the next resistance which is also a 127.2% rejection. 

The silver ETF moved under its 20 period MA and under this short term parallel channel though it has held horizontally. 

Our mechanical silver trade remains on a long but also gave up 2% on Friday. 

Copper was flat this week showing here the overhead resistance. 

Platinum also remained flat. 

Palladium moved up almost 2% with a bit better than average volume 

The euro was also flat. 

The US dollar was virtually unchanged this week. 

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Political - skip if not interested The American Revolution came about as colonists felt that they were being unfairly treated and their rights stripped away. The British, on the other hand, felt that the colonies were created to be used in the way that best suited the crown and parliament. Each year the rights of the current American people are being stripped away and the constitution ignored. Undeclared wars, the Patriot act and the recent signing by President Obama of the National Defense Authorization Act which allows indefinite detention of US citizens with no trial set the stage for an eventual revolution again. The authors of the constitution were extremely aware of how important the rights of the citizens are and in the last few administrations the constitution is just being ignored. If Mitt Romney were to be elected there would be virtually no change in government. No repeal of the Patriot act or NDAA and no stopping of the trumped  up wars that kill tens of thousand of innocent people around the world and bring great shame to this country.. The Fed would still do as they pleased with the economy for their own profit and power and spending would keep going higher. It is rather unbelievable that voters seem to not care about fixing the awful situation in the country. A person like Mitt Romney is not real or honest as he changes what he says depending on which crowd he is in front of. The problem is that the is bought and paid for by a lot that want no change in tax laws or government spending and they are willing to spend a lot to try and protect their favors. Ron Paul who predicted this economic crisis decades ago is the one person running who is straight forward and offers real change and the working to give back our constitutional liberties. This talk of his was on January 31.       So far the only logical and honest choice for 2012 to help fix the broken system

Volatility mean opportunity for futures trading and it is free to try it out.

Global Futures has many platforms available for trading futures and Forex but a very popular one is Global Zen Trader as it is very customizable with  exceled built in  charting that can be used free floating.  We made a short video about it giving a very general overview, and we have links on that page to several other videos about this platform. You can try it for free using live streaming data in order to see if future's trading is right for you..  link here so give it a watch and try it out.

 

Futures and  Forex trading

Global Futures continues to offer excellent service and a variety of trading platforms such as the new Global Zen Trader which includes charts. They have a special offer  for StockTiger readers - 20 commission free contracts.

To try futures trading you may sign up for a free simulated account that uses live streaming data. Several platforms to chose from. Futures can be volatile so great opportunities  for wide swings. If you call them ask for Trenton and mention StockTiger. Click on the Demo image below to sign up.

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If you trade ETFs our large list of them is here http://stocktiger.net/etf/etf.php  A list of the standard, 2X and 3X ETFs from Proshares.  

 

Cents the first trading day in January. We have been very bullish on the market as, as individual stocks dramatically change their character from what we saw in most of December. That is why it on daily videos we have encouraged aggressive buys and not taking is that much short term profits. window the market behaves in this way as we see every year or two many stocks will double and many more go up 20 to 40% and you can make more gains in these short periods of time than the rest of the year combined they have run now for six weeks and for some of the stocks longer so many will find it hard to keep up this pace. If we can get a market correction we will have an opportunity to see how aggressive buyers are to by on pullbacks. you can review many stocks from the watchlist on our stock charts public page as they seem to keep moving. Week after week. Here is a selection to give an idea of some of the significant moves from stocks on the watchlist. Seagate Technology and had a inverse head and shoulders that it broke out of in late December with a measured move target to about 27 and its 27% gain this past week brought it very close to that target

 

This was a new by on Friday moving up on improved volume 

From Friday we had a target of $14 for a quick trade and it moved to that and it's Friday by. 

Initially this homebuilder was on the watchlist at lower levels with a secondary by for a move over 10 which it did on Friday adding almost 12% in gain. 

So many stocks gapped a bit on Friday morning and this one did and added 11% 

Biotech's began their moves in December and January and this was a by at the breakout near 235 $2.35 and it has almost doubled since then. 

Another homebuilder which was a by at lower levels and then again on Friday with its move on greatly expanded volume. 

Another biotech it gapped slightly at the $12 area by pullback. Stock just slightly then gapped above and ran up about 50% from that initial by 

Zynga Was a watch list by at 990 and ran up over 40% by Friday.

 

This weekend's transmission of Hearts of Space is named  Floating Reveries - midwinter piano-chamber-electronics. You have until 3AM EST today to listen for free on their site or check your local PBS radio station for their schedule.  

New additions to our watch list we add new ones each day.  Al the additions today are from the S&P 500. There are too many so pick the ones you like the best and set alerts. We also show the list and current prices and level to watch on our live page each day during market hours so it is very easy to follow,   You can also check progress on our Public Stockcharts pages.

 

BSFT   Over $32.70 - $32.82

CMA   Over $30.08

HCA     Over $27.03

JOY   Over $96.00

RRD   Over $12.18

SPF    Over $4.25

WDR   Over $30.02

AMSC   Over $6.00

 

 

For your eyes and mind  -  2 winter 1 summer  

 

Photograph by Roman Goryachiy

 

 

Photograph by Maksim Evdokimov

 

 

 

Photograph by Sergei Kokinsky

 

That's a full lid for today - have a great week. 

Check the Earnings Calendar on all overnight holds.