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The market was almost as boring today as Friday. The low volume no interest in stocks might remain if yields continue to fall and the outlook for the economy remains tepid. In and interview today I was asked if the balance of the year was going to be this bad for stocks? I am not a prophet, but Europe is recovering the U.S. is likely to see a similar bounce in data. However, we have to be let this develop and watch one day at a time for the implications growth is returning. For now it is wait and see.

Metals moved higher as gold broke above resistance. The global markets showed some buying with a modest move higher. No entries from the watch list, but we did make some moves closer to the entry points. Let them develop and be patient with your entries.

Tonight we cover MOO, DBB, IEV, IYZ, EFA and some global ETFs on the video.

The markets opened better than expected on the jobs report, but then the delayed reaction kicked in and the selling started in earnest. That triggered stops on the list and we took the exits as we discussed. Of course the rally started in the afternoon pushing the market back near the open. That is how it plays sometimes and we have to follow the discipline.

There will be plenty of opportunities as this market sorts itself out. We added XLV, IHE and DOG today. The long plays in the healthcare sector as money rotated that direction this week. The short play on the Dow was a result of last nights post on a negative jobs report. They are updated below.

Next week promises to be equally as exciting with plenty of economic data in store.

Manual updates since the video upload is not working while traveling!

Added Short play QID & REW as the technology and semiconductor sector sold lower. Data is posted below. Watch and manage your stops accordingly. The semiconductors are showing more weakness in relation to the inventory concerns for the second half. Took the short as a result of the data.

Added play in base metals (DBB). This sector has continue to move on better results in steel and copper. Keep tight stop and let this play out short term.

Raised stop on DZZ, short gold play as the metal fell and the fund gained on the move. We have been waiting to the push lower on gold and now it has support nearby. Be patient short and adjust your stop to at least break even for now. Target is $13 short term.

Some give back across the list today. Honor your stops and see how this trading range develops near term. The key now is for the broad market index to find some momentum to follow through resistance. If this fails we have worked our stops near the break even point for now and the short opportunities have been updated on the watch list. Patience as this all plays out.

Click for Jim’s Latest Spotlight Video

Click for Jim’s Latest Spotlight Video

Click for Jim’s Latest Spotlight Video

Bernanke gave investors some confidence as he spoke about the economy and the need for the Fed to accomodate growth. The real rationale was the ease of anxiety over the Fed acting too quickly on rates. Thus, stress released, buyers step forward. Earnings remain positive and the ecomonic data has had back to back days of disappointment. Still in position to test the January high short term, but I would have stops in place just in case.

I cover the opportunities in the sector on tonights videos and the table has been updated.

The play list has been reduced with the stops tight. I stated two weeks ago I was tightening stops based on the negative sentiment building. That is the plus, the negative is the outlook from here. I would like to say I think the market sells off and then moves higher. For now it looks like the negative sentiment could take hold. The confidence factor has been shaken. Clarity is the other issue. Now we see how it plays out.

The video will cover more on how to play this near term.

Stop Hit – ECH
Raised Stops – None
New Plays – None

Headlines are full of the new highs for 2009! I would rather have them telling investors to raise stops, protect your gains and be on watch for how this plays out. The news from Japan on a better than expected GDP report pushed stocks higher in the U.S. This pushed the dollar lower and tested support on the dollar index today. The focus was an improving global picture.

Better global news leads to higher demand for commodities, thus commodities had a great run higher today. The precious metals, the base metals, agriculture and energy all enjoyed a nice push off support after selling last week. This helped many of our plays push higher after testing our stops. Nice gains here to protect and we have made the necessary adjustments.

Retail sales data was the other good news on the day. The consumer was out spending on new autos and merchandise. The retail sector gained 2% on the day and pushed back near the September highs. I still like the sector into the holidays and then we will evaluate.

Small caps made a nice bounce after some ugly selling last week. IJR was up 2.6% on the day and back above the 20 & 50 day moving average. Patient with this sector as it remains on the laggard column. The global news could be the catalyst needed to push the sector back into a leadership role. Watch and see how it responds.

Healthcare is on a roll as IYH hit a new high today. The break higher adds this to leaders column short term and worth watching. I raised my stop on the sector today to protect the gains. Drugs and biotech have been doing nicely in this push off the October lows.

China is hitting new highs as well. GXC hit a new high today as did FXI. Watch and see if this holds short term. The opportunity in China may not be done.

The dollar took a hit and interest rates fell as well. Gold and silver were up big on the day and now all the stars are perfectly aligned? Don’t fall for it! As I stated at the beginning of this post, today is an opportunity to raise your stops and evaluate your plays. Take what the market gives, but don’t confuse brilliance with a bull run.