Earnings Watch

It took an average unemployment report at the end of last week, to push the market above our sell target. We duly took advantage of these prices to sell the market between 1460 - 1470. As we stated last week we do not expect any great shakes from company earnings starting this week, and indeed to set a weak tone for the month as a whole. To counter this we are aware that with an election shortly, the powers that be will not want a weak market, evidenced by a convenient employment rate of 7.8% that even brought comment from Jack Welch. With this in mind we are revising our target price to 1435 where we will take profits on 4 contracts.