Pre Market - August 3rd 2007

It is very quiet this morning as everyone is waiting for the jobs data at 8:30am. Futures are pointing slightly lower but are not moving much ahead of the unemployment data.

Asian stocks were mixed with the Hang Seng up 0.42% and the Nikkei 225 down 0.03%. Europe is mostly in the red at this time with the financial sectors taking a hit. The 3rd largest mutual fund in Germany has halted redemptions, this mutual fund is related to real estate assets. And Bloomberg reports this morning that in the UK home repossessions has risen to an 8 year high on their own sub prime issues.

The data to be released at 8:30 will be a HUGE market mover. If we have a healthy number stocks will be going up, but I will still not jump in yet. How we close the day will be key to reading the tea leaves. It is Friday and with the looming "other shoe to drop" scenario hanging over the markets any big advance today could be quickly sold off as more people want to sell into strength. If big money sees any advance as a gift and takes advantage of it to exit the market then we are going to see continued weakness ahead. If we end the day at the highs then that will tell me that there is some confidence in the weak ahead. Remember that next week we have the Fed meeting so there will be more big events next week as well.

Remember to check in to the site over the weekend for the 1st issue of the new watch list document. It will be worth the wait!