Another day with no gains but one day closer to Friday's Non-Farm Payrolls. Any day that does not end with a loss is a plus ahead of the Payroll report.

Mixed economics produced mixed markets on Wednesday and the outlook for Thursday is slightly negative if the overnight decline in futures continues. The FOMC minutes showed a growing disagreement between the hawks and the doves over how soon the Fed would have to act to head off inflation. This is not what the bulls wanted to hear.

The ISM Services came in at 50.1 and only fractionally in expansion territory but an improvement over last months 48.7 reading. New orders and order backlogs declined.

The market responded with a flat Dow and negative Nasdaq. Techs are clinging to 2300 and the S&P held its gains at 1137 with only a fraction change. We are getting the volatility but not like I expected. The lack of a general market decline has left us with entry targets that are not close and even the volatile stocks are extremely erratic.

I am going to slim down the list again because there is not point in playing if the trend is not profitable.

I forgot to mention yesterday that the GMCR long put was stopped out. I will include it in today's activity but it was stopped on Tuesday.

On the positive side the Gardner Denver short call came within 30 cents of hitting our exit target at $40.50. AvalonBay continued its decline but still has a couple dollars to go before hitting the exit target at $75.

I still have hopes on the DIA position. Unless jobs surprise to the upside I see the market getting progressively weaker.

Change the entry points on these potential plays:

Naked Call Candidates (Lottery plays)

Long Puts

Jim Brown



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