For stocks, it has been a week of paper cut bleeding. Not of the Johnny Knoxville in the webbing of the fingers and toes variety, but that quick, sharp, want to yell and use a few $%$# words type of superficial cut. No matter how minor the nicks, the ticker tape has spots of red heading into Friday's action.
But maybe, the market has seen the worst of it and the indexes are about to get healthy again. Yesterday, during iStock's late afternoon beat on some of our favorite stock charts, we noticed plenty of the major player's share prices firming up. iStock even suggested that Nike Inc. (NKE) could be a solid trade if the market rebounds.
[Related -Initial Jobless Claims Rose Unexpectedly]
In our piece, we wrote that the 12-day averages were holding up for the NASDAQ and S&P, while the 26-day was acting as an effective backstop for the Dow. Additionally, we see another layer of support at 13,000, the NASDAQ at 3050-3060, and at 1390 for the S&P 500.
Until support gives way and the trend is broken, iStock suggests continuing with the strategy of buying the dips.
i On the Economy:
To start the week, Ben Bernanke warned that the economy isn't growing quickly enough to handle the inevitable mass influx of the unemployed, but not really unemployed, seasonally adjusted out of the work force unemployed as they return to the workforce. Got that?
The Fed chairman said the unemployment rate is likely to rise as unemployment benefits ends and terminally unemployed people try to migrate back into the workforce.
[Related -All Quiet on the Record High Front]
Jobs are the big takeaway for the week for iStock. Jobless Claims were higher than expected today, and next week the Employment Situation Report will be released. A friend suggests that the unseasonably warm weather may require a negative "adjustment" of 100,000 jobs or so in next week's report.
By connecting the dots, Bernanke's hints, higher Jobless Claims, and the possibility of a downward revision, it raises the possibility of a big dud when the employment numbers are released next Friday.
Have a great weekend and good luck with your MEGA Millions tickets. In case you missed it, here is what iStock would do with $500 million.
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